Loan facilities for women entrepreneurship in Latvia

NIB and the Council of Europe Development Bank (CEB) have established two loan facilities, in a total amount of EUR 4 million, for women entrepreneurship in Latvia.

The loan agreements with the intermediary banks Hansabanka and Mortagage and Land Bank of Latvia (Hipoteku banka), were signed on 24 February 2004 in Riga.

The signing and the ensuing press conference were attended by Ms Ingrida Bluma, President of Hansabanka; Mr Inesis Feiferis, President of Hipoteku banka; Ms Siv Hellén, Senior Vice President of NIB; and Ms Marja Seppälä, Country Manager of CEB.

NIB and CEB already have similar joint loan facilities, totalling 6 million euros, in Estonia and Lithuania. The loan facilities, channelled through local financial intermediaries, have so far been used for 93 projects and have had a significant effect on employment. It is estimated that the projects have maintained about 1,500 jobs and created about 300 new jobs.

The purpose of the loan facilities for women entrepreneurship in the Baltic countries is to support and increase women’s involvement in both business and decision-making by facilitating their access to credit.

– The aim is to focus on a group of potential bank clients that has been neglected. We want to encourage women entrepreneurs to seek financing for their projects and encourage banks to address women entrepreneurs’ special concerns, says Ms Siv Hellén.

She stresses that the idea is to support both women entrepreneurs and banks, but not to grant loans on subsidised terms.

– Cheaper financing for women projects per se would be inconsistent with the principles of equality between men and women.

NIB launched its first loan programme of 1 million euros for women entrepreneurs in the Baltic countries in 1999. The amount was equally distributed between the three countries. Latvia’s share of 330 000 euros was channelled through Hansabanka to twelve projects, mainly in the retail business, education and service sector.

NIB’s activities in the Baltic region include loan programmes with banks and other intermediaries and direct financing to energy, infrastructure and environmental investments. It is expected that NIB’s activities in Latvia will expand even further in the future – on 11 February Latvia together with Estonia and Lithuania signed an agreement to join NIB on an equal footing with the five Nordic countries. The Baltic countries are expected to become members of NIB from 1 January 2005.