6 21 local banks / 10 foreign banks LatviaBanking Industry21 local banks / 10 foreign banksTotal assets (LVL Mio):
7 Overall profit / loss of the industry LatviaBanking IndustryOverall profit / loss of the industryAs of (in millions of EUR)*RIETUMUUniCredit BankLatvijas KrājbankaAizkraukles BankNordea Bank FinlandDnB NORD BankaLatvijas Hipotēku un zemes bankaSwedbankCitadelebanka* TOP 9 by size of assets. Latvian statistics official data.
8 Benefits of EU membership: LatviaEU MembershipEU member state since 1 May 2004Benefits of EU membership:Participation in the Customs unionduties have been cancelled and quantitative restrictions in mutual trade have been liftedUniform foreign trade policyJoint regional policy for the development of economicallydepressed regionsFreedom of movement (including the labour force)Standardising legislation and social institutesIt is anticipated that the EUR will be introducedin Latvia on 1 January 2014
10 Investment projects and long-term loans RietumuCredit ProductsInvestment projects and long-term loansThe acquisition of fixed assets, expansion, increasing the efficiency of the existing business, and the construction or renovation of propertyRietumu Bank offers: loan financing for a period of 3-7 years at a moderate interest rate and with a flexible schedule of repayments
11 Rietumu Credit Products Short-term loans Efficient solutions for cash flow improvement or for small investments in fixed assetsFinancing for a period of three months or moreConvenient 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 RietumuCredit ProductsTrade finance for import and export operationsAgainst goods in transit and warehoused goods,Under the final buyer’s guarantee,Other personal solutions for increasing the working capital of trade companies.The Bank provides a full range of instruments for supporting foreign trade:Documentary collection,Letters of Credit,Bank guarantees
13 Rietumu Credit Products 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 FinlandShort-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 StatesIndustrial equipment leasing – in the European part of Russia, in Belarus and Ukraine
14 Rietumu Credit Products Investment projects and long-term loans THE LENINGRADREGIONFINLANDSWEDENShort-term loansTHE BALTIC STATESTHE MOSCOWREGIONBELARUSIndustrial equipment leasingKAZAKHSTANUKRAINEUZBEKISTANKYRGYZSTANTAJIKISTAN
15 Project and collateral considerations RietumuCredit ProductsProject and collateral considerationsEach credit project is considered individually, taking into account the business specifics and development plansThe amount, period and interest rate for each project are determined individually
16 General conditions for financing: RietumuCredit ProductsGeneral conditions for financing:Thee years of experience in the business sphere which requires creditThe availability of a cash flow sufficient to be able to pay back the credit amount and meet interest paymentsYour 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 Loan or credit line collateral RietumuCredit ProductsLoan or credit line collateralIncome-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 countriesAdditional collateral:The shares and assets of companies, plus personal and corporate guaranteesTrade finance: goods in transit or warehoused goods and/or accounts receivableOverdraft: 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 Loan with a repayment schedule RietumuCredit ProductsLoan with a repayment scheduleGoals: expansion of the existing business, and increasing its efficiency, including times when this includes the acquisition of fixed assets or restructuring assets and liabilitiesAmount: EUR million (or its equivalent in USD)Rate: from 8% pa.Period: 1-7 years
20 Loans secured by new and used vessels RietumuCredit ProductsLoans secured by new and used vesselsGoals: acquisition of new and used vessels and development of maritime businessAmount: from EUR 2 million (or its equivalent in USD)Rate: from 7% pa.Period: up to 10 yearsExperience in managing maritime business,ownership of vessels, stable financial performance andpositive borrower’s reputation are important.The share of financing: up to 70% of vessel’s value.
21 Main types of trade finance: RietumuCredit ProductsMain types of trade finance: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 dailyGoals: increasing working capitalAmount 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 limitPeriod: from three months to a year (with an option to extend)
22 Main types of trade finance: RietumuCredit ProductsMain types of trade finance:Financing against warehoused goodsFinancing purchases against goods in transitFinancing purchases on claims against the final buyerExport factoring
23 Special conditions for providing financing: RietumuCredit ProductsSpecial conditions for providing financing:The account must show at least three months of activityA transparent commercial activities structureA sufficient level of incoming paymentsMinimum of one year of experience in selling the relevant commodity typeLimit for crediting: 50-70% of the cost of the non-exchange commodity, 70-90% of the cost of the exchange commodity
24 Rietumu Credit Products 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 portionPeriod: from three months to a year
25 Rietumu Credit Products Overdraft Conditions for the provision of overdrafts:The account must show at least nine months of activityA transparent commercial activities structureIncoming payments on the account must amount to a minimum of EUR 500,000 per monthCredit limit is determined as being 25% of the business turnover
26 Proposal for financial and credit companies RietumuCredit ProductsNB:Proposal for financial and credit companiesIf 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 regionsRate: from 8% pa.Specialisation: financing for leasing and mortgage portfolios, consumer lending portfolios, mini loans without collateral, as well as other financial portfoliosConditions: individual, per transaction
27 Rietumu Credit Products Leasing Geography of the proposal: Russia, Belarus, UkraineLoan amount: from USD one millionInterest rate: from 9% pa!Period: from five yearsGoal: financing for leasing transactionsMain 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 company’s profitabilityCrediting of up to 80% of the cost of the financed leasing facilitiesThe size of the total lease portfolio should be a minimum of USD ten million, on condition that such a volume guarantees a negation of lossThe registration of the collateral and insurance taken out on the facility being leasedCollateral:Leased facilityRights of claim to lessees
29 Rietumu Credit Products Industrial leasing Goal: the renovation of fixed assets to enable a profit to be made or to optimise expensesGeography: The European part of Russia,Belarus, UkraineAmount per project: from USD 100,000Currency: USD, EURRate: 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 paymentsDeposit payment of a minimum of 20% of the transaction amountThe presentation of financial statementsThe 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 agreementGuarantees for the associated companies and/or individuals
31 General financing provision procedure RietumuCredit ProductsGeneral financing provision procedureBank applicationStandard period for consideration – 2 to 4 weeksExecution of the transactionProviding financingStandard term for making agreements – a weekThe 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 DepartmentPhone:Fax:Trade Finance DepartmentNatalya Perkhova, Head of DepartmentPhone:Fax:
34 Rietumu Credit Products Contacts Providing loan and leasing resources: Nikita YakimovHead of the Financial Institutes GroupInternational Crediting DepartmentPhone: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 RadionovaCredit Project ManagerPhone:Fax:Yana RozenbergCredit Project ManagerPhone:Fax: