Corporate Lending in Latvia outpaces Eurozone Growth

Corporate lending in Latvia is experiencing robust growth, exceeding rates seen across much of the eurozone. Citadele Bank data reveals a 40% increase in activity from Latvian companies seeking funding compared to last year.

Citadele Bank reviewed over a billion euros worth of business projects in the first half of this year. New loan volumes are stabilizing and trending upward, signaling a positive shift in the Latvian business landscape. “This dynamic reflects the increasing activity of growing companies,” says Girts Glaser, Member of the Citadele Baltic Business Management Team and Chairman of the Board of Citadele Leasing.

The demand for funding spans various sectors, with manufacturing, trade, and agriculture leading the way. Notably, companies with annual turnovers exceeding 1 million euros represent 80% of the total project value, despite accounting for only 30% of all applications. this highlights the meaningful investment being made by larger Latvian businesses.

Compared to 2024, Citadele Bank has observed a 40% surge in companies seeking funding, confirming a strong business recovery and increased investment appetite. Long-term loans remain the preferred borrowing method. The Citadele group is currently processing nearly 10,000 applications.

Geographically, approximately 75% of all company funding applications over the past three years originate from Riga and the surrounding Pieriga region. This concentration reflects the economic hub status of the capital area.

Entrepreneurs in Latgale remain more cautious when it comes to seeking funding. Recent data indicates that companies in this region request, on average, five times less funding than those in Kurzeme or Zemgale. However, Kurzeme and Zemgale are showing promising signs of increased activity. Funding submission volumes in these regions are projected to be 30-40% higher in the first half of 2025 compared to the same period in 2024.

Corporate lending in Latvia grows faster this year

Details gathered by the Financial Industry Association (FNA) from Latvia’s four largest banks corroborates this trend, showing…