Financial Services, Latvia, Markets and Companies
International Internet Magazine. Baltic States news & analytics
Thursday, 18.04.2024, 04:26
26% of SMEs in Latvia in very poor financial situation
Moreover, 1.5% of those companies are likely to go bankrupt
within a year, said Intars Mikelsons, Commercial Director of Kreditinformacijas
Birojs.
At the same time, 47% of Latvian SMEs have excellent, very
good or good credit ratings which means they are unlikely to run into financial
trouble during the next 12 months.
Among the medium-sized and large companies, 12% of
businesses are on the verge of insolvency and nearly 1% might go bankrupt in a
year's time while 63% of companies in this sector have excellent credit
ratings.
All in all, about a half of more than 60,000 companies doing
business in Latvia are in a stable financial position.
Today 10,000 Latvian SMEs were emailed their credit rating
reports. The purpose of the initiative is to show the company managers the
information about their company that is available to other market players and
which is important for their corporate reputation and future borrowings. The
credit ratings are based on the information from the Latvian business register
and the information that participants of the credit information system have
supplied about the payment discipline of their customers.
Kreditinformacijas Birojs was founded in May
2013 by Germany's Creditinfo International GmbH and several Latvian banks --
ABLV Bank, Citadele Bank, DNB Banka, Nordea Bank, SEB Banka and Swedbank
Latvia. In September 2015 Kreditinformacijas Birojs became the first credit
information bureau in Latvia licensed by the Latvian State Inspectorate of
Data.