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

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

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

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

8. Benefits of EU membership:
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
Rietumu
Credit Products
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

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
Rietumu
Credit Products
Trade finance for import and export operations
Against 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 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

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

15. Project and collateral considerations
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. General conditions for financing:
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. Loan or credit line collateral
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
Additional collateral:
The shares and assets of companies, plus personal and corporate guarantees
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. Loan with a repayment schedule
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
Rietumu
Credit Products
Loans secured by new and used vessels
Goals: acquisition of new and used vessels and development of maritime business
Amount: from EUR 2 million (or its equivalent in USD)
Rate: from 7% pa.
Period: up to 10 years
Experience in managing maritime business,
ownership of vessels, stable financial performance and
positive borrower’s reputation are important.
The share of financing: up to 70% of vessel’s value.

21. Main types of trade finance:
Rietumu
Credit Products
Main 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 daily
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)

22. Main types of trade finance:
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. Special conditions for providing financing:
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. 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 portion
Period: 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 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. Proposal for financial and credit companies
Rietumu
Credit Products
NB:
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
Geography of the proposal: Russia, Belarus, Ukraine
Loan amount: from USD one million
Interest rate: from 9% pa!
Period: from five years
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 company’s 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
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
Currency: USD, EUR
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. General financing provision procedure
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