Direct Speech, Financial Services, Latvia, Loan, Markets and Companies

The banks have money – the amount of deposits is two times larger than the amount of money issued loans. However, the main problem concerns the quality of projects and risk levels, Bikis said in an interview with LETA.

"Banks have learned their lesson from the previous economic crisis, they have improved their risk criteria, which is probably why loans are not being issued that easy. The issue is not so much about the money, it is about the quality of projects prepared by businessmen, and the way how risks are evaluated," the prime minister's advisor believes. He also notes that major projects are often associated to state guarantees. The businessman does not believe that the responsibility of all citizens should be involved in risky projects.

Bikis reminds that banks are not interested in hoarding money, they do wish to invest, but there are risks, which are inhibiting the banks from doing so. "A businessman must prepare a project and prove that it is sustainable. It is not that hard to borrow money and then go bankrupt," he reasons.