[OREANDA-NEWS. April 30, 2009. AS „Latvijas Krajbanka” concluded the agreement with Latvian Guarantee Agency on cooperation, which will allow Latvian entrepreneurs to receive state guarantees for bank credits in the case they do not have a sufficient collateral. Thus Latvijas Krajbanka will offer wider possibilities to receive funding to perspective enterprises and topical business projects, which don’t have enough funds for business development, reported the press-centre of Latvijas Krajbanka.

„Latvijas Krajbanka in cooperation with the Latvian Guarantee Agency will be able to implement the tasks in the sphere of small and medium-sized business support, which will help the entrepreneurs to attract new investment for business expansion. Together we will sustain and secure the mechanism enabling the entrepreneurs to receive the support in realization of innovative ideas and collaterals for guarantees in the case of credit or leasing,” explains Martins Bondars, the chairman of the board of Latvijas Krajbanka.

The Latvian Guarantee Agency has confirmed its commitment to issue guarantees for investment and current asset credits, financial leasing and local factoring. The guarantees envisage that in the case the borrower is not able to cover its liabilities, they shall be undertaken by the Latvian Guarantee Agency in the previously determined amount. This mechanism allows the Bank to provide funding to those projects, which cannot be secured by the necessary guarantees, but which can be essential for business environment and national economy. The maximum amount of the guarantee to one transaction is 3 million euros, the guarantee covers no more than 80% from total amount of the transaction.

The evaluation of the projects, submitted for the reception of support, would be made individually, according to the Cabinet Regulation „Regulation on Guarantees for Improvement of Businessmen Competitiveness” and the credit granting policy of the bank. 

Latvijas Krajbanka is the bank with 85-years of experience, both working in the local market and providing services to residents and companies in Latvia and abroad. Krajbanka has the widest client service centre network in Latvia, which allows serving clients easily and quickly throughout Latvia.