RIGAS KOMERC BANKA

Location:

Latvia

Project number:

1311

Business sector:

Notice type:

Private

Environmental category:

FI

PSD disclosed:

03 Nov 1998

Project Description

A stand-by credit facility of US$ 10 million (ECU 8.7 million) to allow Rigas Komercbanka to increase funding to Latvian enterprises.

The project will enable RKB to increase medium-term lending using its own funding, to avoid maturity mismatches between RKB's assets and liabilities and to increase funding to Latvian medium-sized enterprises.

Transition Impact

The project will make medium-term funds available to private firms in Latvia by transforming the maturity of local deposits. It will support a private sector bank and enable it to offer a full range of services. The project will also foster competition in the Latvian banking sector.

The Client

Rigas Komercbanka PLC (RKB) is a joint-stock company subject to Latvian law. At 30 June 1997, RKB was the third-largest bank in Latvia, with total assets of LVL 130 million (ECU 206 million) and equity of LVL 12.9 million (ECU 20 million). The EBRD is a 23 per cent shareholder in RKB.

EBRD Finance

US$ 10 million (ECU 8.7 million) stand-by revolving credit facility, which is for a period of five years, starting at date of signature. The loan will be priced at a floating rate US$ LIBOR plus a commercial margin. Each disbursement will be at least US$ 1 million.

Project Cost

US$ 10 million (ECU 8.7 million).

Environmental Impact

RKB will continue to carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, RKB will require its borrowers to comply, at a minimum, with national as well as local health and safety, environmental and public consultation requirements.

Technical Cooperation

An ECU 800,000 two-year twinning programme has been approved. Grant funding has been requested for one half of this amount, with RKB paying the other half. The programme will cover asset and liability management, credit and marketing, information technology, branch management, financial planning and budgeting, strategic planning and human resources.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.