General data Area: 64,600km² Population: Currency: Language: Ethnic composition: 2.23 million Latvian lats 1 EUR = 0.7028 LVL Latvian, Russian, English Latvians 57.7% Russians 29.6% Belarusians 4.1% Ukrainians 2.7% Poles 2.5% ESTONIA FINLAND RUSSIA BELARUS UKRAINE РУМЫНИЯ POLAND LITHUANIA BALTIC SEA LATVIA
Latvia Banking Industry 21 local banks / 10 foreign banks Total assets (m LVL):
Latvia EU Membership EU member state since 1 May, 2004 Benefits of EU membership: Participation in the Customs union cancelation of duties and quantitative restrictions Unite foreign trade policy Unite policy for the development of economically depressed regions Free movement (incl. labour force) Standardising legislation and social institutes is planned to be introduced in Latvia starting from 1 January, 2014
Transit PortsOil Pipelines RailwaysAir Transport ESTONIA FINLAND RUSSIA BELARUS UKRAINE RUMANIA POLAND LITHUANIA BALTIC SEA LATVIA
Latvia Transit Three largest ports operating in Latvia: Riga, Ventspils and Liepaja RIGAVENTSPILSLIEPAJA Port area Harbourage Overall berths length Maximum draught 1,962ha 4,386ha 13,818m 12.2m 2,208ha 243ha 11,012m 15m 385ha 819ha 10,000m 9.5m RIGA VENTSPILS LIEPAJA PortsOil Pipelines RailwaysAir Transport
Latvia Transit Cargo Turnover in Latvian Ports (in thousands of tonnes) Dry bulkBulk liquidsGeneral cargo PortsOil Pipelines RailwaysAir Transport
Latvia Transit Oil Pipelines Two oil pipelines operating in Latvia: Polotsk-Ventspils oil pipeline (1968), with a capacity of 16 million tonnes per year Polotsk-Ventspils oil products pipeline (1971), with a capacity of 5 million tonnes per year In addition there is the Polotsk-Biržai-Mažeikiu oil pipeline parallel to the Polotsk-Ventspils oil pipeline. VENTSPILS PortsOil Pipelines RailwaysAir Transport
Latvia Transit Railways In 2009 the total volume of cargo turnover on Latvian railroads was 49.2 million tonnes. In 2010 the transit cargo turnover was about 41 million tonnes (-14.6%). RIGA VENTSPILS LIEPAJA PortsOil Pipelines RailwaysAir Transport
Latvia Transit Currently railway transport generates 52% of overland transportation in Latvia and the proportion is increasing. 82% of traffic is generated by transit traffic. Rail-Baltica (2020) Helsinki-Tallinn-Riga-Warsaw-Berlin PortsOil Pipelines RailwaysAir Transport Latvian railways transit turnover (thsnd. Tons)
Latvia Transit Air Transport There are two international airports in Latvia: Riga and Liepaja. Riga International Airport: Passengers (2010): Flights (2010): Cargo (2010): 4,664 68,145 12,247t 82 destinations are available RIGA LIEPAJA PortsOil Pipelines RailwaysAir Transport
Latvia Transit Riga International Airport (RIX) passenger turnover (in thousands) PortsOil Pipelines RailwaysAir Transport
Latvia Transit Cargo Traffic at Riga International Airport (tonnes) PortsOil Pipelines RailwaysAir Transport
Latvia Trade Finance Latvian Ports Cargo turnover in ports of Riga, Ventspils and Liepaja in 2010: Free port of Riga: 30.5 million tonnes (mostly containers and bulk products) Free port of Ventspils: 24.8 million tonnes Free port of Liepaja: 4.4 million tonnes Over 70% of the cargo turnover of Latvian ports is transit cargos from and to CIS countries. LIEPAJA RIGA VENTSPILS 4,4 24,8 30,5
Latvia Trade Finance Rietumu Trade Finance Rietumu Bank finances export-import operations with the inventory stored at or transferred via the Latvian ports of Riga, Ventspils and Liepaja. RIGA VENTSPILS LIEPAJA
Latvia Trade Finance Credit line against warehoused goods Trading company: Buys inventory at its own expense and deposits them at the approved custom warehouse (at the approved freight forwarder) in the port of Riga. The Bank: Having received notification from the warehouse or surveyor regarding inventory stored at the warehouse, the bank grants a loan to the company. Warehouse (freight forwarder): Secures the storage of the goods for the client (the trade company), serving the interests of the bank.
Latvia Trade Finance Credit line against warehoused goods Trade company: Arranges the dispatch of the goods at its own expense or at the expense of the supplier (the final destination being Latvian ports). The Bank: Having received the bill of lading confirming the dispatch of the goods, the bank grants a loan to be repaid when the goods arrive to the destination port or, if the goods are further deposited within a previously approved customs warehouse in the Baltic countries, prior to receiving the goods from the warehouse.
Latvia Trade Finance Export factoring Factoring – financing provided by the bank to those companies which work on deferred payment conditions with their buyers. The Bank finances the Trading Company for the deferred payment term provided to the Buyer. As a rule, the buyers liabilities must be guaranteed by a letter of credit or a guarantee from the approved bank.
Latvia Trade Finance Financing imports and exports Priority goods include: Oil products Wheat Metals Coal Wood chips Deep-frozen goods - meat, fish, poultry, etc Electronics and other consumer goods (up to 80%) (up to 70%) (up to 80%) (up to 60%) (up to 50%) Rietumu is open to considering the financing of other goods.
Major requirements: The company must be a customer of the bank for a minimum three months; Latvia Trade Finance Any application for financing must conform to the following criteria: The company must have stable turnover at Rietumu Bank* and a stable financial position; The companys experience in the financed goods trading field at least a year long; The company must co-finance the transaction by 20-50%; The transaction goods must be liquid, with a remaining shelf-life of twelve months or more; The goods must be stored at a warehouse which is approved by the bank; The goods must be insured. This requirement is not applied to clients who present their official financial statements to the bank where these fully reflect their operations during the last two years, on the condition that all turnover be transferred to Rietumu.
Credit Terms Proportion of financing: 50-80% of the cost of the goods Latvia Trade Finance Minimum loan amount: EUR 200,000.00 Credit line period: 3-12 months Rate: 8-10% per annum
Foreign Trade Payments Letter of Credit Latvia Trade Finance Guarantee Document collection
Contact information +371 6702 5263 Latvia Trade Finance Trade Finance Department firstname.lastname@example.org www.rietumu.ru