Support to Entrepreneurs Support to Entrepreneurs Provided by Mortgage BankProvided by Mortgage Bank

Support to Entrepreneurs Support to Entrepreneurs Provided by Mortgage BankProvided by Mortgage Bank

Gita Granta - VanagaGita Granta - VanagaCredit administratorCredit administrator

Bauska branchBauska branch227.09.2010.7.09.2010.

Mortgage Bank in 2010

Mortgage bank was founded in 1993 as state-owned commercial bank.

On 24 November 2009 the Cabinet of Ministers approved the concept for “Transformation of the state-owned JSC “Mortgage and Land Bank of Latvia” into Development Bank “. The concept stipulated gradual transformation of the Mortgage Bank into a full scale development bank by 31 December 2013.

What role does the Mortgage Bank play on the financial market?

The task of the Mortgage Bank is to supplement, not substitute the financial market of Latvia in the sectors significant to the national economy.

The Mortgage Bank fulfils this role by implementing target programmes approved by state.

What changes have been initiated in the Mortgage Bank?In line with the approved concept and requirements of the DG Competition of the European Commission, Mortgage Bank grants new loans only within the framework of the state aid target programmes.

loans from state aid target programmes

commercial loans

After 24.11.2009.

What state aid target programmes are implemented in 2010?“Support to Self-employment and Business Start-ups“- Start Programme- For emerging and existing new entrepreneursSmall and Medium Enterprises Micro Lending Programme- Micro loans for starting or developing a small businessGrowth loans for small and medium enterprises- Loans for promotion of development of micro, small and medium enterprises and co-operative unions providing agricultural servicesProgramme for Enhancement of Competitiveness of Enterprises- Investment and working capital loans for processing industry enterprisesWorking capital loans for farmers-working capital for production of agricultural goods

Borrowers by Branches Start Programme

9%10%

19%

30%

9%

2%6%

2%2%

11%

Accomodation and public catering Legal and accounting services

Retail trade Other services

Health and social care Creative, arts and entertainment activities

Manufacture of food products Production of clothing

Repair of machinery Other processing industry

Borrowers by Branches Competitiveness Programme for Entrepreneurs

14%

14%

3%5%

9%8%3%2%

20%

6%3%

6% 2% 5%

Manufacture of food products and beverages Woodworking

Manufacture of paper and polygraphy Chemical industry

Manufacture of metals and metal products Machine manufacturing, manufacture of machinery and equipment

Manifacture of furniture Other production

Electric power generation Construction

Other transport Accomodation

Forestry and logging Other branches

Borrowers by Branches Programme for Farmers

49%

6%

1%

1%

16%

5%

1%

16%1% 2% 1%1%

Growing of cereals, leguminous crops and oil seeds Growing of vegetables Propagation of plants

Raising of cattle Raising of dairy cattle Other farming of animals

Raising of swine Mixed agriculture Logging

Processing and preserving of meat Wholesale of feed Retail sale of food

Are there any other financial instruments expected in 2010?To promote entrepreneurship in the countryside and assist the farmers with absorption of the resources of EU funds, the Ministry of Agriculture has drafted and sent to the European Commission legislative amendments stipulating establishment of special loan fund for farmers.

This fund is expected to become operational in autumn this year. The Mortgage Bank will be the manager of the fund. The fund’s budget will be up to LVL 100 mln (resources of EU funds available, but not yet absorbed).

We are proud of them!

We are proud of them!

Thank you for attention!Thank you for attention!

Gita Granta – Vanaga, Bauska branch credit administrator

Telephone +371 63928238, E-mail: gitagv@hipo.lv

More information about Mortgage Bank:www.hipo.lv, Tel:+371 80000100, E-mail: 80000100@hipo.lv

More information about ALTUM:www.hipo.lv, un www.altum.lv Tel: +371 67774100, E-mail: info@altum.lv