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Country Commercial Guides
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CHAPTER VIII. Trade and Project Financing
Description of the Banking System
The first two commercial banks in Latvia were founded under the Soviet rule in 1988. Today there are 27 commercial banks in Latvia, 25 Latvian and 2 foreign subsidiaries or representative offices. Most of the Latvian banks are universal commercial banks and offer a variety of banking products and services. However, due to some insolvency cases in the past, the Bank of Latvia has strengthened its supervisory role and thus only 16 of the 27 banks have a full banking license including deposit taking.
The majority of Latvian banks have already joined the international accounting system SWIFT which provides standardization, effectiveness and security. The Bank of Latvia regulations that provide the regulatory framework and supervision are based on the international monitoring requirements set by the Basle Committee, EU Directives and the International Accounting Standards.
As of June 30, 1999, the assets of Latvia's five largest commercial banks (Parekss Banka, Latvijas Unibanka, Hansabanka, Rietumu Banka, and Latvijas Krajbanka) totaled LVL 1.12 billion (USD 1.87 billion), or 61% of the combined bank assets.
Most of the financial difficulties experienced by Latvian banks in 1998 were directly or indirectly triggered by the Russian financial crisis. The banks' investments in Russian government short-term securities (GKO) failed, there was a considerable loss of Russian customers, and Latvian banks had to set aside reserves for loans issued to Latvian producers focusing on the Russian market.
According to financial experts, the Russian financial collapse had even positive effects on the Latvian banking sector. The increasing competition on the domestic market has provided a powerful incentive for the banking sector to consolidate; and the uncertain future has forced Latvian banks to look for experienced western business partners, particularly Nordic banks.
Foreign banks have the right to open subsidiaries and branch offices in Latvia and the licenses are granted using the same procedure as with domestic banks. Currently there are three foreign banks operating in Latvia, two German banks and one Estonian bank.
Foreign Exchange Controls Affecting Trading
Latvian government maintains no controls over the import, export, use or exchange of foreign currencies in Latvia.
General Financing Availability
Medium-term Eximbank financing is available in Latvia for credits that are backed by the full faith and credit of the Latvian government, or guaranteed by a proven, reputable financial entity. EBRD financing is also available for both private and public sector projects.
None of the Latvian banks has subsidiaries, branches or representative offices in the U.S. but all major banks have correspondent arrangements with U.S. banks.
Main Banks in Latvia Bank of Latvia Valdemara 2-a, Riga, LV 1050 Latvia tel: (371) 732-3863; fax: (371) 702-2420 http://www.bank.lv Latvian Savings Bank (Latvijas Krajbanka) Olafs Zveinieks, Public Relations Palasta street 1, Riga LV-1954 Latvia tel: (371) 709 2043, fax: (371) 721-2083 http://www.krajbanka.lv Latvijas Unibanka Harolds Burkovskis, Public Relations L. Pils street 23, Riga LV-1050 Latvia tel: (371) 7215-601 (371) fax: (371) 7215-335 http://www.unibanka.lv MeritaNordBanken Latvia Aigars Laizans, Public Relations Kalku 15, Riga, LV 1050 Latvia tel: (371) 709-6244; fax: (371) 722-4124 Parex Bank (Parekss Banka) Karlis Vahsteins, Public Relations Smilsu street 3, Riga LV-1050 Latvia tel: (371) 701-0728, fax: (371) 701 0768 http://www.parex.lv Rietumu Bank Michael Bourke, President 54 Brivibas St, Riga LV-1010 Latvia tel.: (371) 702-5222, fax: (371) 702-5223 http://www.rietumu.lv First Latvian Commercial Bank (Pirmabanka) Carl Hakan Kallaker, President Smilsu St 6, Riga LV-1803 Latvia tel: 371 701 5237; fax: 371 782 0080 http://www.pirmabanka.lv Baltic International Bank (Baltijas Starptautiska banka) Alla Tkacenko, President Kaleju St. 43, Riga LV-1050 Latvia Tel: 371 722 2789; fax: 371 721 6870 http://www.bib.lv Baltic Transit Bank (Baltijas Tranzitu banka) Zenon Olbrys, President 13 Janvara St. Riga LV-1050 Latvia Tel: 371 702 4701; fax: 371 721 1985 http://www.btb.lv Multibanka Svetlana Dzene, President Elizabetes St. 57, Riga LV-1772 Latvia Tel: 371 728 9546; fax: 371 782 8232 http://www.multibanka.com Bank Paritate Viktors Siperkovskis, Acting President Terbatas St. 4, Riga LV-1134 Latvia Tel: 371 728 8433; fax: 371 704 1300 http://www.paritate.lv Bank Saules Natalja Klendere, President Smilsu St. 16, Riga LV-1873 Latvia Tel: 371 722 4541; fax: 371 702 0500 http://www.saules.com Trasta Komercbanka Baiba Veida, Customer Service Miesnieku St. 9, Riga LV-1050 Latvia Tel: 371 702 7777; fax: 371 702 7729 http://www.tkb.lv VEF Bank Edvins Korneliuss, President Brivibas gatve 197, Riga LV-1039 Latvia Tel: 371 755 3687; 371 755 6774 http://www.vefbank.com Hansabank Latvia Eliza Abele, Public Relations Kalku 26, Riga, LV 1050 Latvia tel: (371) 702-4575; fax: (371) 702- 4571 http://www.hbl.lv Societe Generale Lija Makare, Marketing Division Brivibas 55, Riga, LV 1050 tel: (371) 731-0051; fax: (371) 731-0060 Vereinsbank Eizens Cepurnieks, Vice President Elizabetes 63, Riga, LV 1050 tel: (371) 708-5500, fax: (371) 708-5507
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title 17, United States Code.
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