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

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

LatviaBasicFacts

LatviaGeopolitical

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%Belarussians 4.1%Ukrainians 2.7%Poles 2.5%

ESTONIA

FINLAND

RUSSIA

BELARUS

UKRAINE

ROMANIA

POLAND

LITHUANIA

BALTICSEA

LATVIA

LatviaEconomic

Performance 2010

Real GDP: USD 17.2 billion

Unemployment rate:

Inflation:

18%

-1.4%

LatviaBanking Industry

21 local banks / 10 foreign banks

Total assets (LVL Mio):

LatviaBanking Industry

Overall profit / loss of the industryAs of 30.06.2010 (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 BankaLatvijas Hipotēku un

zemes banka

SwedbankCitadele

banka

LatviaEU 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 economicallydepressed regions

Freedom of movement (including the labour force)

Standardising legislation and social institutes

It is anticipated that the EUR will be introducedin Latvia on 1 January 2014

CreditProducts

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

RietumuCredit 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

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 buyer’s guarantee,

Other personal solutions for increasing the working capital of trade companies.

Documentary collection,

Letters of Credit,

Bank guarantees


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


Investment projects and long-term loans

Short-term loans

Industrial equipment leasing


FINLANDTHE LENINGRAD

REGION

THE MOSCOWREGION

UKRAINE

BELARUS

THE BALTIC STATES

SWEDEN

UZBEKISTAN

TAJIKISTAN

KYRGYZSTAN

KAZAKHSTAN


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


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


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

•

•


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


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 1 - 20 million (or its equivalent in USD)

Rate: from 8% pa.

Period: 1-7 years

Loans secured by new and used vessels

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.

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



Main types of trade finance:

Goals: increasing working capital

Amount of financing: EUR 0.2 - 5 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

•


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•


Special conditions for providing financing:

The account must show at least three months of activityA 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

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


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

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


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)

•


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 facilityRights of claim to lessees


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: 3 - 5 years


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 agreementGuarantees for the associated companies and/or individuals


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.

A personal approach and an optimum solution for each project!


Contacts

International Crediting Department

Dmitry Pavlov, Head of the Department Phone: +371 6720 1564Fax: +371 6720 1563E-mail: [email protected]

Trade Finance Department

Natalya Perkhova, Head of Department Phone: +371 6702 5249Fax: +371 6702 5256E-mail: [email protected]


Contacts Providing loan and leasing resources:

Nikita Yakimov Head of the Financial Institutes Group International Crediting DepartmentPhone: +371 6700 5575Fax: +371 6720 1563E-mail: [email protected]

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: +371 6702 5253Fax: +371 6720 1563E-mail: [email protected]

Yana RozenbergCredit Project ManagerPhone: +371 6720 1562Fax: +371 6720 1563E-mail: [email protected]


Contacts

Industrial leasing:

Westleasing-M Ltd (Russia)www.westleasingm.ruDmitry Chereshnev +7 495 662 4032

Westtransinvest Ltd (Belarus)www.wti.byAndrei Orlov+375 17 269 9399

Westleasing Ltd (Ukraine)www.wls.com.uaDmitry Gurvich +380 44 206 9917

Thank you for your attention

Documents

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