Loan guarantee for Mortgage and Land Bank of Latvia

On 16 December 2003, EIF signed an agreement with the Mortgage and Land Bank of Latvia (Hipoteku banka) under the Loan Guarantee window of the European Commission's MAP mandate. EIF's guarantee will cover the credit risk of a portfolio of SME loans originated by the bank, with a particular focus on start-ups and expanding companies. Under the terms of the agreement, beneficiary SMEs will benefit from reduced collateral requirements.

The Mortgage and Land Bank of Latvia is a wholly state-owned bank founded in 1993 with the aim to promote the development of the national economy of the restored Republic of Latvia through SME lending, mortgage lending and the issuing of mortgage bonds. The current agreement, which is the third one signed in the Acceding and Accession countries under the MAP mandate, marks the first time that EIF will cooperate with an intermediary in Latvia.