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Mortgage bank fully repays 50 million28.11.2008 Today Mortgage bank shall perform a complete repayment of 50 million euro syndicated loan to West European banks. Mortgage bank is the first in Latvia, who is capable to carry out a repayment of such scale during the period of global financial crisis. "We made a borrowing to enable the functions of primary operations of the Bank and therefore, in 2005, we signed an agreement with West European banks on a syndicated loan. The lending process was conducted by a German bank Bayern LB," says Rolands Paņko, Member of the Board of the Mortgage bank. "After repayment of this loan the bank nevertheless maintains high liquidity data," he adds. "Before turbulences in the global financial sector, the common practise was to renew similar syndicated loans, but we are operating with a contingency reserve - early on we accumulated resource stockpiles and currently are able to perform repayment of the 50 million euro borrowing completely," says Normunds Šuksts, Head of Financial Management department of the Mortgage bank. "In the current conditions of stagnation in the financial market, Latvian credit institutions are prevented from renewal of similar loans in the world. The current situation has made large-scale financial institutions extremely cautious, therefore credit resources have become considerable more expensive and less available in general, to compare with the previous year," he remarks. Mortgage bank has a considerable experience in successful attraction of syndicated loans, management of such processes, and this duly repaid loan shall serve as testimony for the investors abroad to appraise Mortgage bank as safe and stable financial institution. Mortgage bank is the only commercial bank that is 100% owned by the State of Latvia. Priority of the Mortgage bank is support to small and medium businesses and stimulation of economic activity in all regions of Latvia, via cooperation with private commercial banks. The Mortgage bank Group incorporates subsidiary companies: Hipolīzings, HipoNIA, Hipo Fondi and Riska investīciju sabiedrība. Mareks Matisons |
