OREANDA-NEWS. On 26 May 2008 was announced, that a contract was signed which stipulates that the state owned joint stock company Valsts nekustamie оpaрumi (State Real Estate Properties) will receive a credit limit for construction and purchase of real estate properties from AS SEB banka, AS Hansabanka and Nordea Bank Finland Plc Latvian branch. The total granted credit limit amounts to EUR 102.5m.

Ms. Marina Agafoncikova, Head of Real Estate Financing Department of SEB banka: "This is, certainly, a significant deal both for the commercial banks and the country at large. Already for several years SEB banka has been actively involved in financing of local governments and also in the future we will support the government and municipalities in implementation of their important ideas. This project is clearly a great opportunity for the banks to share their experience and jointly support a countrywide project. As regards this project I believe that this kind of co-operation between the banks will become more common in granting of large loans in Latvia in the future because in this way banks will have the opportunity to render the best services to large, stable customers who implement significant projects. "

Mr. Maris Avotins, Chairman of the Management Board of Hansabanka: "Currently, it is important to give positive stimuli for the economy which would demonstrate the potential for long-term growth. It is now the right time to work and lay the groundwork for future success. The problems we face have been discussed enough and therefore it is now important to advance and work."

Mr. Janis Zagorskis, Head of Local Customers Unit of Corporate Banking Department of Nordea Bank: "Granting of financing to public and municipal institutions is one of operational priorities of Nordea. Also in the future we plan to support implementation of countrywide projects, within the framework of which various social and infrastructure objects are improved not only in Riga but also across regions of Latvia."

The syndicate of the banks was selected in a tender after evaluation of the offered loan proposals. The loan is envisaged for the state owned joint stock company "Valsts nekustamie ipasumi" to implement construction, renovation and purchase of various real estate properties for public administration purposes in the future.