Discussion in Rietumu Bank on the Prospects of Financing the Aviation Business
06-Nov-2018, 13:43 / Products & Services The headquarters of Rietumu Bank has been the venue of a thematic business lunch of the Latvian Aviation Association “Financial Services and Insurance in Aviation”.
The participants of the event were leading Latvian entrepreneurs, top managers of big companies and experts in aviation, finance and insurance.
The discussion was held in the context of developing a strategy for further development of the aviation industry. As emphasised by the organisers, aviation transport and accompanying services are now one of the most dynamically growing industries not only in Latvia, but worldwide, retaining huge potential.
The entrepreneurs and experts participating in the discussion talked about the opportunities and prospects of financing and insurance in the aviation business, with account of factors such as the international nature of operations and industry-specific risks.
According to the Head of the Credit Department of Rietumu Bank Artur Juksh, “Financing of aviation, including small aircraft, is one of the promising trends in the development of financial services. Several years ago, Rietumu Bank started issuing loans to its customers for the acquisition of business jets, which are used for both private and corporate needs. This is a rather narrow, but interesting segment. The demand for such financing is growing steadily, reflecting the general tendencies of transport development.”
In turn, Member of the Board of the Latvian Aviation Association Arturs Kokars emphasised the necessity for tighter cooperation with banks, “Companies operating in the aviation industry have expressed their own specifics and requirements, which must be considered with regard to financing. Therefore, it is important to develop the exchange of information with the financial sector to allow banks to offer customised products that meet such requirements.
In the course of the discussion, it was noted that the aviation industry evokes a wide response and support on the state level. Thus, a memorandum on cooperation was signed between the Aviation Association and the Ministry of Transport of Latvia at the Riga Aviation Forum in May, anticipating even closer cooperation for the maximally efficient development of the industry.
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