15 Nov 2007

NIB long-term financing for Latvian hospital modernisation

NIB grants 30-year-maturity loan to Riga Psychiatric Clinic

On 15 November, the Nordic Investment Bank (NIB) signed an agreement with Rigas Psihiatrijas un narkologijas centrs (Riga Psychiatric Clinic) for a loan totalling EUR 27 million with a maturity of 30 years and a 6-year grace period.

NIB's loan will finance the investments in the hospital's infrastructure. The funds will be invested in a new building for patients, training facilities for students and the renovation of existing buildings. Besides the long-term NIB loan, the project is also being financed from EU structural funds and the state budget. The project is expected to be completed in 2011.

The Riga Psychiatric Clinic is the only provider of tertiary care within the psychiatric field in Latvia. The hospital also provides a unique base for student diploma training and scientific research. The modernisation of the hospital is part of the state programme for reforming and upgrading the national health care sector being carried out in 2005-2010.

"NIB supports the modernisation of the social infrastructure necessary for Latvia's further sustainable and balanced economic development. A strong social infrastructure is one of the key prerequisites for better living standards and the country's competitiveness," says Johnny Åkerholm, NIB President and CEO.

This is NIB's sixth loan for the implementation of the state programme. A year ago, NIB granted EUR 18 million for the reconstruction and purchase of equipment for the hospitals in Ainazi, Akniste, Ludza and Strenci as well as the Riga Stradina University.