OREANDA-NEWS. June 17, 2010. First Loan under the Cooperation Agreement Concluded in March between SEB banka and the European Investment Fund Granted in Latvia, reported the press-centre of SEB Banka.

SEB banka and SIA KONVERT PLAST signed the first loan agreement on granting funds to small and medium businesses within the framework of the European Investment Fund (EIF) programme. The agreement will ensure the receipt of the loan in equal shares from SEB banka and EIF resources. The company plans to use the long-term loan of 190 thousand euro to purchase two polyethylene foam production lines. The term of the loan is five years.
 
The project implemented by SIA KONVERT PLAST is aimed at creating a plant for the production of shock-resistant plastic packaging. The company will use the loan to purchase two polyethylene foam EPE production lines to produce polyethylene plastic and profiles. The total cost of the project amounts to nearly 370 thousand lats, which provides the opportunity to purchase three more production units and renovate the plant building. One project of purchasing equipment was already implemented last year with the support of EU structural funds and a SEB banka loan of 79.4 thousand euro.

On 26 March this year, the EIF signed an agreement with SEB banka, within the framework of which the bank will grant loans for the total amount of 60 million euro to small and medium businesses in Latvia. The goal of this cooperation is to promote lending to SMEs.

Imants Steins, procurator of SIA KONVERT PLAST: "We have successfully cooperated with SEB banka for over 10 years. I am satisfied with this cooperation. The bank staff works professionally. The bank trusted our business idea and we will do everything to live up to their expectations."

Kaspars Delins, vice president and board member of SEB banka: "We are truly satisfied that the cooperation agreement with the EIF has yielded its first positive results and that the SEB banka is the first bank to use this opportunity to provide support to small and medium businesses within the framework of this programme."

Graham Cope, European Investment Fund, head of Northern Europe Regional Business Development: "This first loan granted by SEB banka within the framework of the EIF lending instrument is a major step in the activities of the Investment Fund. SEB banka has achieved much to get to this moment, and the EIF trusts that the wide network of SEB banka branches will ensure further growth in lending amounts under the instrument."