credit products
DESCRIPTION
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. Latvia Basic Facts. Latvia Geopolitical Data. FINLAND. Area :. 64,600 km ². Population :. BALTIC SEA. - PowerPoint PPT PresentationTRANSCRIPT
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
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
RietumuCredit 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
RietumuCredit Products
Investment projects and long-term loans
Short-term loans
Industrial equipment leasing
RietumuCredit Products
FINLANDTHE LENINGRAD
REGION
THE MOSCOWREGION
UKRAINE
BELARUS
THE BALTIC STATES
SWEDEN
UZBEKISTAN
TAJIKISTAN
KYRGYZSTAN
KAZAKHSTAN
RietumuCredit 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
RietumuCredit 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
RietumuCredit 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
•
•
RietumuCredit 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
RietumuCredit 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 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
RietumuCredit Products
RietumuCredit Products
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
•
RietumuCredit 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•
RietumuCredit Products
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
RietumuCredit Products
Overdraft
RietumuCredit 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
NB:
RietumuCredit 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
RietumuCredit 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)
•
RietumuCredit 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 facilityRights of claim to lessees
RietumuCredit 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: 3 - 5 years
RietumuCredit 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 agreementGuarantees for the associated companies and/or individuals
RietumuCredit 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.
A personal approach and an optimum solution for each project!
RietumuCredit Products
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]
RietumuCredit Products
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]
RietumuCredit Products
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