Financial Services, Latvia, Loan

"I do not wish to be overly pessimistic, however, I foresee that soon we will approach the same lending level as in 2001-2002," the expert comments.

He draws attention to the fact that currently not only Latvia, but all of Europe lacks money resources, thus entrepreneurs should maximally try to ensure liquidity for their enterprises themselves, writes LETA.

The FCMC representative warns that enterprises will not have an opportunity to borrow thousands of lats in banks for their current assets, as it was possible some time ago.

As Brazovskis explains, banks' liquidity is influenced both by decisions made by the government and by residents. If a large number of depositors decide to withdraw their savings from banks, they have less current assets to use for lending to entrepreneurs," FCMC deputy chairman points out.

"The more deposits are withdrawn from banks, the less money will become available for loans and the less the chances to resume crediting," Brazovskis says.