International business lending
Rietumu specialises in corporate lending in Latvia and abroad.
Loans are secured by liquid commercial real estate in large cities of European Russia, the Republic of Belarus and other European countries.
Loan accommodation and repayment procedure
Rietumu customers have access to the entire range of loan products, including financing in the form of a standard loan or a revolving line of credit.
A standard loan is accommodated as a lump sum or by instalments in line with the project schedule. This loan is repaid according to a preliminarily-approved payment schedule.
A line of credit is normally accommodated for the company’s working capital financing within the limit provided. This line of credit is repaid by the company when necessary.
A review of an application takes up to two weeks upon submission of a complete package of documents.
General lending terms:
- Loan type: loan/line of credit
- Loan amount: from EUR 2 million
- Interest rate: as agreed upon by the parties
- Period: up to 5 years
- Repayment schedule: up to 10 years
- LTV up to 70% of the fair market value of the collateral
- Currency: USD, EUR
- Application fee: 0.1% of the transaction amount, no less than EUR 5,000
- Commercial real estate in the Russian Federation, the Republic of Belarus, other EU and CIS countries – as agreed upon with the bank.
- Shares and assets of companies, personal and corporate securities
- At least 3 years work in the business sector where lending is sought
- The company’s positive equity and profitability
- Sufficiency of a cash flow to pay interest and principal
- Registration and insurance of pledges
All loans have to be approved by the Bank’s Credit Committee. A loan can be granted only after the loan agreement and other documents have been signed and all conditions precedent have been met. The Bank does not consider funding of speculative transactions.