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EBRD President visits Latvia
Expresses commitment to support SMEs and large-scale privatisation
Jean Lemierre, President of the European Bank for Reconstruction and Development, arrives in Latvia today for a two-day visit, his first to the country since being elected President at the Bank's annual meeting in Riga last year. In meetings with business leaders and senior government officials, including President Vaira Vike-Freiberga and Prime Minister Andris Berzins, Mr Lemierre will reiterate the Bank's commitment to invest in Latvia.
The EBRD, one of the largest investors in Latvia's private sector, has invested around €327 million in 26 projects, and expects to build on that in 2001 with an active pipeline of potential projects, including projects in the food retail and banking sectors.
Mr Lemierre will express the Bank's continued willingness to support operations that boost Latvia's economic development and swift transition to a market economy. In particular, he will emphasise support for small and medium-sized enterprises (SMEs), the further restructuring and privatisation of large state-owned companies, in sectors which include shipping and energy, as well as a continued focus on municipal finance and the strengthening of the non-banking financial sector. Mr Lemierre will also draw attention to the importance of corporate transparency and of appropriate regulatory frameworks to foster competition and attract investment.
Smaller businesses play a crucial role in economic development. To support long-term financing to SMEs, the EBRD recently extended a €10 million loan to domestic banks to on-lend to smaller businesses. Additional credit lines of this type are expected to follow. The EBRD also supports SME development through the Baltic Small Equity Fund and the Business Advisory Services programme, set up to support smaller businesses in the Baltic States.
Mr Lemierre will try to gain a better understanding of the country's investment climate and reform efforts as the Bank starts preparing a formal new strategy for its future operations in Latvia, which is expected towards the end of 2001.
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