Support for health care reforms in Estonia and Latvia

NIB has signed agreements on long-term loans to the North Estonian Medical Centre (NEMC) in the city of Tallinn, Estonia, and to four hospitals and the Riga Stradina University in Latvia. The total amount of the loans is EUR 50 million.

The loan to NEMC provides 50% of the financing necessary for the construction of a high-tech diagnostic and treatment centre. The new complex will be completed in 2009. NEMC is Estonia’s largest regional hospital. It serves an area with 800,000 inhabitants, or half of the country’s population. “As our hospital is going through a major infrastructure development process in the coming 5 years, NIB is a perfect match for our needs. We see the Bank as a strong and competitive financing partner with an international reputation, and experience working with governmental institutions and in infrastructure projects,” says Tõnis Allik, chairman of NEMC’s board.

Local hospitals in Latvia

In Latvia, the hospitals that received NIB loans are situated in the towns of Ainaži, Aknīste, Ludza and Strenči in the eastern and northern parts of the country. The financing will be used for the construction of new sections of the hospitals and the reconstruction of existing buildings, as well as the purchase of modern medical equipment. The investment projects are part of large-scale health care sector reform programmes in Estonia and Latvia.

“NIB supports the modernisation of the social infrastructure necessary for the Baltic countries’ further sustainable and balanced economic development. A strong social infrastructure is one of the key prerequisites for better living standards and the competitiveness of these countries’ economies,” says Johnny Åkerholm, NIB President and CEO.

The health care sector is prioritised in the Baltic countries, which became NIB members in 2005. The governments of the new member countries are committed to restructuring their health care sectors.