According to the head of Rietumu Bank’s Trade Finance Department Natalya Perkhova, Latvia has great potential for attracting new transit freight flows from South-East Asia, the CIS countries, and Europe. During the past six month Rietumu Bank has considered dozens of new projects regarding financing of such deals. 
“There are uniform rules for the admission of goods into the EU and, therefore, in order to deliver goods to Europe, entrepreneurs choose a country which is conveniently located and which offers the best conditions. Latvia, with its advantageous geographical location, its developed infrastructure and a favourable pricing policy, has every chance of becoming one of the most important European transit centres. The advantage also lies in the fact that financing for such transactions can be received here, on the spot,” emphasises Natalya Perkhova.
Rietumu Bank’s spokesperson points out the growing interest in financing freight transit via Latvia. At the moment the bank considers various projects in this field, and some of them come from regional representatives of the bank in Russia, primarily from Moscow. Moreover, Rietumu Bank has experience of financing Latvian exporters and companies that are engaged in the import of consumer goods into the CIS countries, as well as import-export operations which concern raw materials.
“Apart from the traditional transit of raw materials from the CIS to the West, now the tendency for transit in the other direction via Latvia is something that is also getting stronger,” says Natalya Perkhova. “This tendency covers the transportation of consumer goods and agricultural products from South-East Asia, primarily from China, to Western Europe and Russia, as well as supplies of European goods to the CIS countries.”
China is an important trade partner for both Russia and Europe - last year China succeeded in surpassing the USA with regard to the turnover of goods supplied to the EU. “In view of the growing role of China in international trade, Latvia can use the advantages that are available to it in order to strengthen its influence in the field of freight transit from this region,” says Natalya Perkhova.
At present, Rietumu Bank is one of the few banks in the Baltic States to finance import-export operations via the region’s ports, and primarily through Riga, Ventspils, Liepaja, Klaipeda and St Petersburg. The bank’s major clients are either internationally-based or are Baltic companies with an average monthly turnover of between one to five million euros, with financing being provided by the bank to the tune of between 200,000 to five million euros.
The credit resources may be used throughout the entire term of performing a transaction, starting from the purchasing of goods, for instance, in China, their delivery by sea during a month - one and a half months and customs warehousing in Latvia or other Baltic countries for several months. The collateral is goods which are in transit or which have been warehoused. Therefore, the bank devotes special attention to the liquidity of the goods, as well as the reputation of the client and its partners, whether these are freight forwarders, terminal owners, or customs warehouses. Applications by new clients to receive financing from Rietumu Bank are considered within two to four weeks, depending on the specific details of the project.
Eleonora Gailisha Mass Media and Public Relations
Phone: +371-67020506
Fax: +371-67020563
E-mail:
egailisha@rietumu.lv
