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Credit Products. Content 1. Latvia: basic facts 1.1 General data 1.2 Economic performance 1.3 Banking industry 1.4 EU membership 2. Rietumu: credit products.

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Presentation on theme: "Credit Products. Content 1. Latvia: basic facts 1.1 General data 1.2 Economic performance 1.3 Banking industry 1.4 EU membership 2. Rietumu: credit products."— Presentation transcript:

1 Credit Products

2 Content 1. Latvia: basic facts 1.1 General data 1.2 Economic performance 1.3 Banking industry 1.4 EU membership 2. Rietumu: credit products

3 Latvia Basic Facts

4 Latvia Geopolitical Data Area: 64,600km² Population: Currency: Language: Ethnic composition: 2.23 million Latvian Lats 1 EUR = LVL Latvian, Russian, English Latvians 57.7% Russians 29.6% Belarussians 4.1% Ukrainians 2.7% Poles 2.5% ESTONIA FINLAND RUSSIA BELARUS UKRAINE ROMANIA POLAND LITHUANIA BALTIC SEA LATVIA

5 Latvia Economic Performance 2010 Real GDP:USD 17.2 billion Unemployment rate: Inflation: 18% -1.4%

6 Latvia Banking Industry 21 local banks / 10 foreign banks Total assets (LVL Mio):

7 Latvia Banking Industry Overall profit / loss of the industry As of (in millions of EUR)* * TOP 9 by size of assets. Latvian statistics official data. RIETUMU UniCredit Bank Latvijas Krājbanka Aizkraukles Bank Nordea Bank Finland DnB NORD Banka Latvijas Hipotēku un zemes banka Swedbank Citadele banka

8 Latvia EU Membership EU member state since 1 May 2004 Benefits of EU membership: Participation in the Customs union duties have been cancelled and quantitative restrictions in mutual trade have been lifted Uniform foreign trade policy Joint regional policy for the development of economically depressed regions Freedom of movement (including the labour force) Standardising legislation and social institutes It is anticipated that the EUR will be introduced in Latvia on 1 January 2014

9 Credit Products

10 Investment projects and long-term loans The acquisition of fixed assets, expansion, increasing the efficiency of the existing business, and the construction or renovation of property Rietumu Bank offers: loan financing for a period of 3-7 years at a moderate interest rate and with a flexible schedule of repayments Rietumu Credit Products

11 Rietumu Credit Products Short-term loans Efficient solutions for cash flow improvement or for small investments in fixed assets Financing for a period of three months or more Convenient repayment procedure: a flexible schedule, repayment of the main amount at the end of the term or overdraft

12 Trade finance for import and export operations Against goods in transit and warehoused goods, The Bank provides a full range of instruments for supporting foreign trade: Under the final buyers guarantee, Other personal solutions for increasing the working capital of trade companies. Documentary collection, Letters of Credit, Bank guarantees Rietumu Credit Products

13 Geography Investment projects and long-term loans – in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in the larger cities of the European part of Russia, in Belarus, the Baltic States, and Finland Short-term loans – in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in the larger cities of the European part of Russia, in Belarus, Uzbekistan, Tajikistan, Kazakhstan, Kyrgyzstan and other CIS countries, in the Baltic States Industrial equipment leasing – in the European part of Russia, in Belarus and Ukraine Rietumu Credit Products

14 Investment projects and long-term loans Short-term loans Industrial equipment leasing Rietumu Credit Products FINLAND THE LENINGRAD REGION THE MOSCOW REGION UKRAINE BELARUS THE BALTIC STATES SWEDEN UZBEKISTAN TAJIKISTAN KYRGYZSTAN KAZAKHSTAN

15 Rietumu Credit Products Project and collateral considerations Each credit project is considered individually, taking into account the business specifics and development plans The amount, period and interest rate for each project are determined individually

16 Rietumu Credit Products General conditions for financing: Thee years of experience in the business sphere which requires credit The availability of a cash flow sufficient to be able to pay back the credit amount and meet interest payments Your own funds in the project which requires credit must be no less than 20% The loan amount fluctuates within a range of 50% to 80% from the agreed cost of the collateral (in the case of leveraged financing) Collateral registration and insurance

17 Rietumu Credit Products Loan or credit line collateral Income-producing property in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in other economic centres of the European part of Russia, in Belarus, the Baltic States and other EU countries The shares and assets of companies, plus personal and corporate guarantees Additional collateral: Trade finance: goods in transit or warehoused goods and/or accounts receivable Overdraft: account turnover, personal and corporate guarantees

18 Rietumu Credit Products NB: When financing investment projects a loan is issued in parts, in accordance with the project implementation schedule. The interest is calculated for the de facto amount received. Benefits may be provided for the loan repayment: Deferred payment of the main amount, Flexible schedule of payments linked to the project implementation terms

19 Rietumu Credit Products Loan with a repayment schedule Goals: expansion of the existing business, and increasing its efficiency, including times when this includes the acquisition of fixed assets or restructuring assets and liabilities Amount: EUR million (or its equivalent in USD) Rate: from 8% pa. Period: 1-7 years

20 Loans secured by new and used vessels Experience in managing maritime business, ownership of vessels, stable financial performance and positive borrowers reputation are important. The share of financing: up to 70% of vessels value. Amount: from EUR 2 million (or its equivalent in USD) Rate: from 7% pa. Period: up to 10 years Goals: acquisition of new and used vessels and development of maritime business Rietumu Credit Products

21 Rietumu Credit Products Main types of trade finance: Goals: increasing working capital Amount of financing: EUR million (or its equivalent in USD) Rate: from 8% pa. for the provided portion of the limit, 1% p.a. for reserving the unused portion of the limit Period: from three months to a year (with an option to extend) Acceptance: financing is provided upon request, with payment of the accumulated interested being made monthly; Acceptance-free: financing is provided automatically by crediting the account, with payment of the accumulated interested being made daily

22 Rietumu Credit Products Main types of trade finance: Financing against warehoused goods Financing purchases against goods in transit Financing purchases on claims against the final buyer Export factoring

23 Rietumu Credit Products Special conditions for providing financing: The account must show at least three months of activity A transparent commercial activities structure A sufficient level of incoming payments Minimum of one year of experience in selling the relevant commodity type Limit for crediting: 50-70% of the cost of the non-exchange commodity, 70-90% of the cost of the exchange commodity

24 Overdraft Goals: increase in working capital Amount: EUR 40 thousand to 2 million (or its equivalent in USD) Rate: from 14% pa. for the financing provided, 2% pa. for reserving the unused portion Period: from three months to a year Rietumu Credit Products

25 Overdraft Rietumu Credit Products Conditions for the provision of overdrafts: The account must show at least nine months of activity A transparent commercial activities structure Incoming payments on the account must amount to a minimum of EUR 500,000 per month Credit limit is determined as being 25% of the business turnover

26 NB: Rietumu Credit Products Proposal for financial and credit companies If your company needs to (re)finance its credit resources, Rietumu offers individual and competitive terms for refinancing your credit portfolio! Geography: we consider proposals from the EU and CIS countries, as well as from other regions Rate: from 8% pa. Specialisation: financing for leasing and mortgage portfolios, consumer lending portfolios, mini loans without collateral, as well as other financial portfolios Conditions: individual, per transaction

27 Rietumu Credit Products Leasing Period: from five years Geography of the proposal: Russia, Belarus, Ukraine Loan amount: from USD one million Interest rate: from 9% pa! Goal: financing for leasing transactions Main types of leasing services: Financing for specific leasing transactions (a loan with special terms and conditions) Financing for a large number of transactions within the framework of a general limit and on the same conditions (a framework loan)

28 Rietumu Credit Products Leasing Financing terms: Positive equity and the companys profitability Crediting of up to 80% of the cost of the financed leasing facilities The size of the total lease portfolio should be a minimum of USD ten million, on condition that such a volume guarantees a negation of loss The registration of the collateral and insurance taken out on the facility being leased Collateral: Leased facility Rights of claim to lessees

29 Rietumu Credit Products Industrial leasing Currency: USD, EUR Goal: the renovation of fixed assets to enable a profit to be made or to optimise expenses Geography: The European part of Russia, Belarus, Ukraine Amount per project: from USD 100,000 Rate: appreciation of the facility being leased (the total amount of payments for the facility in relation to its initial value) from 7% pa. The period depends on the leased facility: years

30 Rietumu Credit Products Industrial leasing Terms of financing: The positive equity and profitability of the company being sufficient to enable it to meet lease payments Deposit payment of a minimum of 20% of the transaction amount The presentation of financial statements The leased facility must be in demand on the secondary market (for instance, road-building equipment, commercial and passenger vehicles, industrial equipment, railway rolling stock, etc) Collateral: The object of the leasing agreement Guarantees for the associated companies and/or individuals

31 Rietumu Credit Products General financing provision procedure Bank application Standard period for consideration – 2 to 4 weeks Execution of the transaction Providing financing Standard term for making agreements – a week The time required to fulfil the terms for the provision of financing depends upon the client * Our specialists will render the required assistance in the preparation of documents.

32 A personal approach and an optimum solution for each project!

33 Rietumu Credit Products Contacts International Crediting Department Dmitry Pavlov, Head of the Department Phone: Fax: Trade Finance Department Natalya Perkhova, Head of Department Phone: Fax:

34 Rietumu Credit Products Contacts Providing loan and leasing resources: Nikita Yakimov Head of the Financial Institutes Group International Crediting Department Phone: Fax: Projects in Russia (Moscow, the Moscow Region, other areas) and the CIS countries: Projects in Belarus and Russia (Saint Petersburg, the Leningrad Region): Anastasia Radionova Credit Project Manager Phone: Fax: Yana Rozenberg Credit Project Manager Phone: Fax:

35 Rietumu Credit Products Contacts Industrial leasing: Westleasing-M Ltd (Russia) Dmitry Chereshnev Westtransinvest Ltd (Belarus) Andrei Orlov Westleasing Ltd (Ukraine) Dmitry Gurvich

36 Thank you for your attention


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