Transcript Presentation: Credit Products

Credit Products
Content
1. Latvia: basic facts
1.1 General data
1.2 Economic performance
1.3 Banking industry
1.4 EU membership
2. Rietumu: credit products
Latvia
Basic
Facts
Latvia
Geopolitical
Data
FINLAND
BALTIC
SEA
ESTONIA
RUSSIA
LATVIA
LITHUANIA
BELARUS
POLAND
UKRAINE
ROMANIA
Area:
64,600km²
Population:
2.23 million
Currency:
Latvian Lats 1 EUR = 0.7028 LVL
Language:
Latvian, Russian, English
Ethnic composition:
Latvians 57.7%
Russians 29.6%
Belarussians 4.1%
Ukrainians 2.7%
Poles 2.5%
Latvia
Economic
Performance
2010
Real GDP:
USD 17.2 billion
Unemployment rate:
18%
Inflation:
-1.4%
Latvia
Banking Industry
21 local banks / 10 foreign banks
Total assets (LVL Mio):
Latvia
Banking Industry
Overall profit / loss of the industry
As of 30.06.2010 (in millions of EUR)*
RIETUMU
UniCredit Bank
Latvijas Krājbanka
Aizkraukles Bank
Nordea Bank Finland
DnB NORD Banka
Latvijas Hipotēku un
zemes banka
Swedbank
Citadele
banka
* TOP 9 by size of assets. Latvian statistics official data.
Latvia
EU Membership
EU member state since 1 May 2004
Benefits of EU membership:
Participation in the Customs union
 duties have been cancelled and quantitative restrictions in
mutual trade have been lifted
Uniform foreign trade policy
Joint regional policy for the development of economically
depressed regions
Freedom of movement (including the labour force)
Standardising legislation and social institutes
It is anticipated that the EUR will be introduced
in Latvia on 1 January 2014
Credit
Products
Rietumu
Credit Products
Investment projects and long-term loans
The acquisition of fixed assets, expansion, increasing
the efficiency of the existing business, and the
construction or renovation of property
Rietumu Bank offers: loan financing for a period of
3-7 years at a moderate interest rate and with a
flexible schedule of repayments
Rietumu
Credit Products
Short-term loans
Efficient solutions for cash flow improvement or for
small investments in fixed assets
Financing for a period of three months or more
Convenient repayment procedure: a flexible schedule,
repayment of the main amount at the end of the term
or overdraft
Rietumu
Credit Products
Trade finance for import and export
operations
Against goods in transit and warehoused goods,
Under the final buyer’s guarantee,
Other personal solutions for increasing the working
capital of trade companies.
The Bank provides a full range of instruments for
supporting foreign trade:
Documentary collection,
Letters of Credit,
Bank guarantees
Rietumu
Credit Products
Geography
Investment projects and long-term loans – in Moscow and the
Moscow Region, Saint Petersburg and the Leningrad Region, in the
larger cities of the European part of Russia, in Belarus, the Baltic
States, and Finland
Short-term loans – in Moscow and the Moscow Region, Saint
Petersburg and the Leningrad Region, in the larger cities of the
European part of Russia, in Belarus, Uzbekistan, Tajikistan,
Kazakhstan, Kyrgyzstan and other CIS countries, in the Baltic
States
Industrial equipment leasing – in the European part of Russia,
in Belarus and Ukraine
Rietumu
Credit Products
Investment projects
and long-term loans
THE LENINGRAD
REGION
FINLAND
SWEDEN
Short-term loans
THE BALTIC STATES
THE MOSCOW
REGION
BELARUS
Industrial equipment
leasing
UKRAINE
KAZAKHSTAN
UZBEKISTAN
KYRGYZSTAN
TAJIKISTAN
Rietumu
Credit Products
Project and collateral considerations
Each credit project is considered individually, taking into account
the business specifics and development plans
The amount, period and interest rate for each project are
determined individually
Rietumu
Credit Products
General conditions for financing:
Thee years of experience in the business sphere which requires
credit
The availability of a cash flow sufficient to be able to pay back the
credit amount and meet interest payments
Your own funds in the project which requires credit must be no less
than 20%
The loan amount fluctuates within a range of 50% to 80% from the
agreed cost of the collateral (in the case of leveraged financing)
Collateral registration and insurance
Rietumu
Credit Products
Loan or credit line collateral
Income-producing property in Moscow and the Moscow Region,
Saint Petersburg and the Leningrad Region, in other economic
centres of the European part of Russia, in Belarus, the Baltic States
and other EU countries
Additional collateral:
The shares and assets of companies, plus personal and corporate
guarantees
•
Trade finance: goods in transit or warehoused goods and/or
accounts receivable
•
Overdraft: account turnover, personal and corporate guarantees
Rietumu
Credit Products
NB:
When financing investment projects a loan is issued in
parts, in accordance with the project implementation
schedule. The interest is calculated for the de facto
amount received.
Benefits may be provided for the loan repayment:
Deferred payment of the main amount,
Flexible schedule of payments linked to the project
implementation terms
Rietumu
Credit Products
Loan with a repayment schedule
Goals: expansion of the existing business, and increasing its
efficiency, including times when this includes the acquisition of
fixed assets or restructuring assets and liabilities
Amount: EUR 1 - 20 million (or its equivalent in USD)
Rate: from 8% pa.
Period: 1-7 years
Rietumu
Credit Products
Loans secured by new and used vessels
Goals: acquisition of new and used vessels and
development of maritime business
Amount: from EUR 2 million (or its equivalent in USD)
Rate: from 7% pa.
Period: up to 10 years
Experience in managing maritime business,
ownership of vessels, stable financial performance and
positive borrower’s reputation are important.
The share of financing: up to 70% of vessel’s value.
Rietumu
Credit Products
Main types of trade finance:
•
Acceptance: financing is provided upon request, with payment of
the accumulated interested being made monthly;
•
Acceptance-free: financing is provided automatically by crediting
the account, with payment of the accumulated interested being
made daily
Goals: increasing working capital
Amount of financing: EUR 0.2 - 5 million
(or its equivalent in USD)
Rate: from 8% pa. for the provided portion of the limit, 1% p.a.
for reserving the unused portion of the limit
Period: from three months to a year (with an option to extend)
Rietumu
Credit Products
Main types of trade finance:
•
Financing against warehoused goods
•
Financing purchases against goods in transit
•
Financing purchases on claims against the final buyer
•
Export factoring
Rietumu
Credit Products
Special conditions for providing financing:
The account must show at least three months of activity
A transparent commercial activities structure
A sufficient level of incoming payments
Minimum of one year of experience in selling the
relevant commodity type
Limit for crediting: 50-70% of the cost of the non-exchange
commodity, 70-90% of the cost of the exchange
commodity
Rietumu
Credit Products
Overdraft
Goals: increase in working capital
Amount: EUR 40 thousand to 2 million (or its equivalent in
USD)
Rate: from 14% pa. for the financing provided, 2% pa. for reserving
the unused portion
Period: from three months to a year
Rietumu
Credit Products
Overdraft
Conditions for the provision of overdrafts:
The account must show at least nine months of activity
A transparent commercial activities structure
Incoming payments on the account must amount to a
minimum of EUR 500,000 per month
Credit limit is determined as being 25% of the business
turnover
Rietumu
Credit Products
NB:
Proposal for financial and credit companies
If your company needs to (re)finance its credit resources, Rietumu
offers individual and competitive terms for refinancing your credit
portfolio!
Geography: we consider proposals from the EU and CIS countries, as
well as from other regions
Rate: from 8% pa.
Specialisation: financing for leasing and mortgage portfolios,
consumer lending portfolios, mini loans without collateral, as well as
other financial portfolios
Conditions: individual, per transaction
Rietumu
Credit Products
Leasing
Geography of the proposal: Russia, Belarus, Ukraine
Loan amount: from USD one million
Interest rate: from 9% pa!
Period: from five years
Goal: financing for leasing transactions
Main types of leasing services:
•
Financing for specific leasing transactions (a loan with special
terms and conditions)
•
Financing for a large number of transactions within the framework
of a general limit and on the same conditions (a framework loan)
Rietumu
Credit Products
Leasing
Financing terms:
Positive equity and the company’s profitability
Crediting of up to 80% of the cost of the financed leasing
facilities
The size of the total lease portfolio should be a minimum of
USD ten million, on condition that such a volume
guarantees a negation of loss
The registration of the collateral and insurance taken out
on the facility being leased
Collateral:
Leased facility
Rights of claim to lessees
Rietumu
Credit Products
Industrial leasing
Goal: the renovation of fixed assets to enable a profit to be
made or to optimise expenses
Geography: The European part of Russia,
Belarus, Ukraine
Amount per project: from USD 100,000
Currency: USD, EUR
Rate: appreciation of the facility being leased (the total amount
of payments for the facility in relation to its initial value) from
7% pa.
The period depends on the leased facility: 3 - 5 years
Rietumu
Credit Products
Industrial leasing
Terms of financing:
The positive equity and profitability of the company being
sufficient to enable it to meet lease payments
Deposit payment of a minimum of 20% of the transaction
amount
The presentation of financial statements
The leased facility must be in demand on the secondary market
(for instance, road-building equipment, commercial and passenger vehicles, industria
equipment, railway rolling stock, etc)
Collateral:
The object of the leasing agreement
Guarantees for the associated companies and/or
individuals
Rietumu
Credit Products
General financing provision procedure
Bank application
• Standard period for consideration – 2 to 4 weeks
Execution of the transaction
Providing financing
• Standard term for making agreements – a week
• The time required to fulfil the terms for the provision of financing
depends upon the client
* Our specialists will render the required assistance in the preparation of documents.
A personal approach and an
optimum solution for each project!
Rietumu
Credit Products
Contacts
International Crediting Department
Dmitry Pavlov, Head of the Department
Phone: +371 6720 1564
Fax: +371 6720 1563
E-mail: [email protected]
Trade Finance Department
Natalya Perkhova, Head of Department
Phone: +371 6702 5249
Fax: +371 6702 5256
E-mail: [email protected]
Rietumu
Credit Products
Contacts
Providing loan and leasing resources:
Nikita Yakimov
Head of the Financial Institutes Group
International Crediting Department
Phone: +371 6700 5575
Fax: +371 6720 1563
E-mail: [email protected]
Projects in Russia (Moscow, the
Moscow Region, other areas)
and the CIS countries:
Projects in Belarus and Russia
(Saint Petersburg, the Leningrad
Region):
Anastasia Radionova
Yana Rozenberg
Credit Project Manager
Credit Project Manager
Phone: +371 6702 5253
Fax: +371 6720 1563
E-mail: [email protected]
Phone: +371 6720 1562
Fax: +371 6720 1563
E-mail: [email protected]
Rietumu
Credit Products
Contacts
Industrial leasing:
Westleasing-M Ltd (Russia)
www.westleasingm.ru
Dmitry Chereshnev
+7 495 662 4032
Westtransinvest Ltd (Belarus)
www.wti.by
Andrei Orlov
+375 17 269 9399
Westleasing Ltd (Ukraine)
www.wls.com.ua
Dmitry Gurvich
+380 44 206 9917
Thank you for your attention