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EBRD loan to Saules Banka supports Latvia's commercial banking
As part of its ongoing strategy of financing the private sector through reputable banks in Latvia, the European Bank for Reconstruction and Development (EBRD) has extended a US$ 8 million (ECU 7 million) loan to A/S Saules Banka, one of the country's leading banks.
"The local banking system remains the key to channelling finance to the private sector. The EBRD's loan will provide Saules Banka with additional medium-term funding to meet the needs of the growing number of creditworthy small and medium-sized companies," said David Hexter, Deputy Vice President at the EBRD. "We hope that this will encourage international banks to increase their lending to Saules Banka and other Latvian banks."
The loan will be disbursed in two tranches of US$ 5 million and US$ 3 million to finance medium-term projects of up to US$ 1.5 million aimed at small and medium-sized enterprises in Latvia.
Saules Banka is a universal commercial bank providing a full range of corporate, retail and investment banking services. In order to expand, it plans to increase its activity in the corporate lending market.
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