EU – Baltic States, Financial Services, Funds, Latvia, Legislation, Railways, Transport

As reported, Stadler has offered a 15-year lease agreement in the amount of EUR 150 million.

Birkmanis indicates that Stadler has carefully examined its ability to provide funding for the upcoming 15 years. It was a major criteria in regard to procurement of the trains, Birkmanis says.

A large manufacturing company like Stadler is more capable of taking loans than Pasazieru vilciens, therefore, it was decided that the manufacturer will do the funding. The task of Pasazieru vilciens is to make a monthly lease payment. The company will not make any advance payments, but Stadler will fund the manufacturing process for 18 months. After 30 days, Pasazieru vilciens will make its first lease payment. "It is beneficial. Furthermore, we did not demand any subsidies from the state. Stadler will provide funding for 15 years, therefore, a decision has been made," Birkmanis explained.

He also repeatedly stressed that the EUR 10 million annual lease payment will have to be made only around 2016. It will be a gradual process, and the full sum will be paid step-by-step.