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Baltic International Bank encourges clients to use financila services on pre–aranged basis or remotley

Due to measures dedicated to restrict Covid-19 in Latvia, starting April 7, 2021, Baltic International Bank encourages our clients  to use remote financial services and conduct your financial transactions remotely as much as possible. In-person customer service will be provided by prior appointment.   Remote customer service We have already widely and deeply integrated remote services into our working practices, thus enabling you to manage your finances and to access your accounts and transactions within a 24-hour period from anywhere. Use the most convenient channel for remote communication with the Bank: Internet Banking facility Email (to communicate with your private banker) Phone-based remote customer service: +371 6700 0444 Info email address: info@bib.eu   Information for vault attendants  To access your safe deposit box, you should pre-arrange your visit. Please contact your private banker to schedule the appointment. During this period, please visit Bank’s vault only if you really need to access your locker and you cannot therefore reschedule or postpone the visit.   Thank you in advance for your understanding.  

Changes in the Bank’s working hours on Easter Holidays

Dear Clients! In connection with the Easter holiday, the Bank’s working hours have been changed: 01.04.2021. – Baltic International Bank will serve clients remotely until 4 p.m. 02.04.2021. and 05.04.2021. – Baltic International Bank will be closed. Please pay due attention to the above mentioned changes and plan your financial transactions in a timely manner.   Happy Easter!

Weekly financial market overview 22.03.-28.03.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week US President Joe Biden's team is developing a new package of measures to support the economy, reduce harmful emissions and reduce economic inequality in the amount of $3 trillion. New measures have been discussed for several months and this week the head of the White House will present the first part of them at his speech in Pittsburgh. Biden's advisers recommend breaking the package of new measures into two parts to make it more appealing to push it through Congress. The first part of the measures will concern the development of infrastructure, including clean energy and other fast-growing industries of the future, such as communication technology 5G. It will also include the introduction of broadband in rural areas, training of millions of workers, the construction of a million affordable and energy-efficient residential buildings. It follows from the documents that almost $1 trillion is planned to be spent on the construction of roads, bridges, railways, ports, charging stations for electric vehicles and improving power grids. The second part of the package will affect the development of human infrastructure - students, workers and the unemployed. It provides for the allocation of significant funds for education and programs aimed, among other things, at increasing the employment of women and helping them to combine work and childcare. The package will extend or permanently expand subsidies for low- and middle-income Americans to purchase health insurance and tax credits aimed at reducing poverty. Part of the costs under the new package could be covered by higher taxes for corporations, including an increase in the corporate income tax rate from the current 21% and measures to force multinational corporations to pay taxes in the United States on income they receive abroad. Earlier, on March 11, Biden signed a package of measures to help the economy and the Americans in the amount of $1.9 trillion. It includes, among other things, direct payments to most Americans in the amount of $1,400, the allocation of $25 billion to support the business in utilities and rent payments, and about $10 billion to help mortgage borrowers. Economic data Eurozone. According to the preliminary assessment of the PMI business activity index in March, the index increased by 3.7 points and amounted to 52.5. Of the indicators that make up the index, business activity in the service sector was 3.1 points higher, while the state of the manufacturing sector rose 4.5 points. US. According to the preliminary assessment of the PMI business activity index in March, the indicator decreased by 0.4 points and amounted to 59.1. Of the indicators that make up the index, business activity in the service sector was 0.2 points higher, and the state of the manufacturing sector increased by 0.4 points. The volume of orders for durable goods in February decreased by 1.1% versus the previous month. The fall in the base indicator, which does not include civil aviation, was 0.9%. The number of initial jobless claims for the week was registered in the amount of 684 thousand, which is 97 thousand less than the previous week and 46 thousand less than predicted by analysts. In February, the level of personal income, as expected, decreased by 7.1% mom, while in January incomes showed an increase of 10.1%. The level of personal spending in February fell by 1% mom, after growing by 3.4% in January. Key events this week On Wednesday, the rise in prices for March will become known in the Eurozone, the US will report on changes in oil reserves, and in China, the level of business activity in the industrial sector will become known. On Thursday, the US will publish the number of initial jobless claims for the week. On Friday, the US will report on the state of the labor market in March. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 15.03.-21.03.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week The US FED kept the base interest rate at the level of 0-0.25% per annum. The committee decided to maintain the range of the federal funds rate at 0-0.25% and believes it would be appropriate to maintain it at this level until conditions in the labor market reach levels corresponding to estimates of maximum employment, as well as inflation of 2%. The FED improved its forecast for US GDP growth in 2021 from 4.2% to 6.5%, and also raised its forecast for inflation from 1.8% to 2.4%. According to the Fed's forecast, unemployment in the United States will be 4.5% in 2021, 3.9% in 2022 and 3.5% in 2023. The average long-term forecast for unemployment is 4%. The regulator announced plans to continue the asset repurchases in the amount of $120 billion per month until significant progress is made in achieving employment and inflation targets. The FED said in a statement that economic development will be heavily influenced by the spread of the coronavirus, in particular with the progress of vaccinations, and that the public health crisis continues to weigh on economic activity, employment and inflation, posing significant risks to the economic outlook. US Federal Reserve Chairman Jerome Powell said at a press briefing that the FED will support the economy as long as it takes. On their March meeting, the Bank of Japan kept the interest rate at the negative level - minus 0.1%. Eight participants in the meeting were in favor of maintaining a negative interest rate, one - against. In addition, the regulator plans to buy an unlimited number of government bonds and continue targeting the yield on 10-year government bonds at a level close to 0%. It is noted that depending on the dynamics of economic activity and prices, profitability may rise and fall to some extent. The regulator also decided to extend the additional repurchase of commercial paper and corporate bonds until the end of September 2021. The maximum purchase amount is about 20 trillion yen in total. The Japanese central bank also kept the annual volume of exchange-traded fund buybacks at about 12 trillion yen and real estate investment trust assets at about 180 billion yen. In the short and long term, the Japanese Central Bank expects rates to remain at the current or lower level. Also, the Bank of England on Thursday did not change the size of the key rate and the parameters of the stimulus program, expecting the recovery of the British economy in 2021 thanks to the active vaccination of the population against coronavirus. The central bank kept the key rate at 0.1%, the volume of the asset purchase program - at 895 billion pounds. The decision of the Central Bank was adopted unanimously and coincided with analysts' forecasts. Economic data Eurozone. The consumer price index in February increased by 0.2% versus January, while the annual inflation amounted to 0.9%. The growth of the core inflation rate, excluding food and energy, in February amounted to 1.1% y/y. US. Retail sales in February fell 3% versus January, while retail sales were expected to decline by only 0.5%. In turn, excluding data on gasoline and car sales from the indicator, retail sales in February decreased by 2.7%. Industrial production also fell 2.2% in February versus January, while a slight rise of 0.3% was expected. The volume of industrial production decreased by 4.2% compared to February 2020. The number of initial jobless claims for the week was registered in the amount of 770 thousand, which is 45 thousand more than the week before and 70 thousand more than predicted by analysts. China. The volume of retail sales in January-February, compared to the same period last year, increased by 33.8%. This rapid growth is due to the low base effect, which is due to a full lockdown during same time period last year. Industrial production in January-February also increased by 35.1% compared to the same period last year, for the same reasons. The unemployment rate in January-February increased by 0.2 percentage points and amounted to 5.5%. Key events this week On Wednesday, the Eurozone, as well as the US, will know the level of business activity in March, and the US will also publish data on sales of durable goods for February and changes in oil inventories for the week. On Thursday, the US is to publish the latest estimate of GDP growth for the fourth quarter of 2020, as well as the number of initial jobless claims for the week. On Friday, the United States will report on changes in personal income and expenses of citizens for February. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 08.03.-14.03.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week In a new forecast released on March 9, the Organization for Economic Co-operation and Development (OECD) expects the global economy to grow 5.6 percent in 2021. This is 1.4 percentage points higher than in the previous forecast. In 2022, global GDP will increase by 4 percent, the report says. The outlook for the global economy has improved significantly thanks to effective campaigns to vaccinate the population against COVID-19 and the allocation of additional financial support measures in some countries. They expect that it will be possible to reach the pre-crisis level by mid-2021. Thus, the growth of US GDP in 2021 will be 6.5 percent, and a year later - 4 percent, analysts at the OECD believe. The German economy in 2021 is expected to grow by 3 percent, follows from the forecast. This is 0.2 percentage points higher than the previous estimate. In 2022, Germany's GDP will increase by 3.7 percent, according to the OECD. Following the March meeting, the European Central Bank announced its intention to accelerate the redemption of bonds under its PEPP program in order to support the EU economy. In EU recovery is expected to lag behind the US, constrained by the slow rollout of the vaccination campaign and cuts in government aid spending. ECB President Christine Lagarde is optimistic and believes that the ongoing vaccination campaign, along with the gradual easing of containment measures, provided that any further adverse events associated with the pandemic are ruled out, reinforce expectations of a sustained recovery in economic activity throughout 2021. The purchase of assets will lead to a decrease in their yield, which serves as a guideline for borrowing in the entire region. Thus, the ECB will theoretically help reduce the cost of loans for companies that need to invest or borrow to survive the pandemic. The volume of the emergency program of repurchase of assets of the ECB left at the same level - 1.85 trillion euros, and the base interest rate on loans, as expected, kept at zero. The rate on deposits remained at minus 0.5% and the rate on margin loans at 0.25%. US President Joe Biden signed a $1.9 trillion economic aid package that provides direct, one-time payments of $1,400 for most Americans, as well as tax breaks for millions of families. By signing the bill, Biden promised that the money would help rebuild America's economy and support workers and the middle class. The US government has already adopted three aid packages for citizens and companies affected by the pandemic, totaling more than $5 trillion. Unlike the previous two aid packages, this one has not been voted on by any Republican legislator in either house of Congress. He made it through the House of Representatives and Senate solely thanks to Democratic votes. Direct one-time payments of 1,400 will be received by all Americans who earn less than $75,000 a year, or $150,000 per married couple. This is the majority of the population. Many families with minors will receive additional tax breaks ranging from $3,000 to $3,600 per child - in addition to the already existing deductions. In addition, unemployment benefits of $300 per week will be extended until September. Another $350 billion will go to support states and counties, $130 billion - to open schools, almost $50 billion - for the coronavirus testing and research program and another $14 billion for additional purchases of vaccines. The plan also provides support for small and medium-sized businesses. Economic data US. The consumer price index in February rose by 0.4% versus January, while the annual inflation rate was 1.7%. The growth of the core inflation rate, excluding food and energy, amounted to 1.3% y/y in February. The number of initial jobless claims for the week was registered in the amount of 712 thousand, which is 42 thousand less than the previous week and 13 thousand less than predicted by analysts. China. The consumer price index in February increased by 0.6% versus January, while the annual deflation amounted to 0.2%. Key events this week This week, the Fed, the Bank of England and the Bank of Japan will publish their decisions on monetary policy. On Monday, China is to publish data on retail trade, industrial production and unemployment rates for January and February. On Tuesday, data on retail trade and industrial production for February will be released in the United States. On Wednesday, data on the growth of prices in February will be published in the Eurozone, and in the US report on the change in oil reserves for the week will become available. On Thursday, the Eurozone will publish the state of the trade balance in January, and the US will publish data on the number of initial jobless claims for the week. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Baltic International Bank encourages clients to use the remote financial services or on a pre-arranged basis!

In light of restrictions by Government of Latvia that will remain in effect from March16  till April 6th 2021, we encourage you to use remote financial services and conduct your financial transactions remotely as much as possible. In-person customer service will be provided by prior appointment.   Remote customer service We have already widely and deeply integrated remote services into our working practices, thus enabling you to manage your finances and to access your accounts and transactions within a 24-hour period from anywhere. Use the most convenient channel for remote communication with the Bank: Internet Banking facility Email (to communicate with your private banker) Phone-based remote customer service: +371 6700 0444 Info email address: info@bib.eu   Information for vault attendants  To access your safe deposit box, you should pre-arrange your visit. Please contact your private banker to schedule the appointment. During this period, please visit Bank’s vault only if you really need to access your locker and you cannot therefore reschedule or postpone the visit. Thank you in advance for your understanding.

Weekly financial market overview 01.03.-07.03.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week At the National People's party Congress, the highest authority in the PRC, the Chinese authorities set a target for annual economic growth of 6 percent. In a pandemic, the PRC is almost the only large economy in the world that is showing growth. The Chinese leadership expects that by the end of 2021, the growth rate of the country's economy will exceed 6 percent. Last year, despite the economic downturn amid the pandemic, this figure was 2.3 percent. This was achieved thanks to an ambitious incentive program. In addition, Beijing plans to increase its military budget by 6.8 percent. This means that defense spending will grow faster this year than budget spending as a whole. In 2020, the increase in military spending was 6.6 percent. Contributions are mounting amid continuing tensions with the United States, India and Taiwan. In addition, the Chinese authorities decided to take up reforms in the social sphere. The Chinese authorities will gradually raise the retirement age over five years. This goal is laid down in the 14th plan for the socio-economic development of the state for 2021-2025. Currently, men in China can retire at 60 and women at 55. By 2025, this age will be 65 for men and 60 for women, respectively. Economic data Eurozone. According to the results of the final revision of the PMI business activity index in February, the indicator increased by 1 point in relation to January and amounted to 48.8. Of the indicators that make up the index, business activity in the service sector was 0.3 points higher, while the state of the manufacturing sector rose 2.9 points. The unemployment rate in January, for the third month in a row, remained unchanged at 8.1%, 0.2 percentage points below analysts' expectations. The consumer price index in February increased by 0.2% versus January, while the annual inflation amounted to 0.9%. The growth of the core inflation rate, excluding food and energy, amounted to 1.1% y/y in February. US. The number of initial jobless claims for the week was registered in the amount of 745 thousand, which is 9 thousand more than the week before and 5 thousand less than predicted by analysts. The unemployment rate in February fell by 0.1 percentage points and amounted to 6.2%, and the number of non-farm payrolls amounted to 379 thousand, which is 200 thousand more than expected and 213 thousand more than a month earlier. According to the results of the final revision of the PMI business activity index in February, the indicator increased by 0.8 points in relation to January and amounted to 59.5. Of the indicators that make up the index, business activity in the service sector was 1.5 points higher, while the state of the manufacturing sector rose 3.1 points. The trade deficit in January amounted to $ 68.2 billion. Exports in January increased by 1% compared to December 2020, while imports grew by 1.4% over the same period. China. According to Caixin Bank, in February, the PMI in the manufacturing sector decreased by 0.6 points and amounted to 50.9 p., In turn, according to the National Bureau of Statistics of China, the PMI Manufacturing in February was 50.6 p. Key events this week The main event this week will be the vote in the US Senate on the adoption of Joe Biden's economic stimulus plan, which, if adopted, will be signed by Biden himself, after which it will come into force. On Wednesday, the level of inflation for February will become known in China and the United States, and the United States will also report on the growth of oil reserves for the week. On Thursday, the ECB will publish its decision on key interest rates, and in the US the number of initial jobless claims for the week will become available. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 22.02.-28.02.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week   The US House of Representatives has approved a $1.9 trillion economic bailout package prepared by President Joe Biden's administration. 219 members of the House of Representatives voted for the bill, while 212 voted against it. The total volume of the aid package is equal to almost 10 percent of the country's GDP. The bill provides for the allocation of $400 billion to combat the spread of the coronavirus, about $1 trillion will be allocated to help citizens affected by the pandemic and restrictive measures, the rest of the money will go to stimulate economic growth. With this program, Biden aims to create millions of new jobs. In addition, direct payments to private households, funding for coronavirus tests and COVID-19 vaccinations, and additional assistance to the unemployed are provided. After the adoption of the bill by the House of Representatives, the document will go to the Senate in early March. In the Senate, part of Biden's plan has already failed to raise the national minimum wage to $15 an hour, which now stands at $7.25. As a result, this measure was excluded from the bill. Biden and his Democratic Party are pushing for the package to be fast-tracked by March 14, when the extended and increased unemployment relief expires. In the Senate, Democrats and Republicans each have 50 votes, but in the event of a stalemate, Vice President Kamala Harris, who is also the chairman of the upper house of parliament, can cast her vote. Republicans oppose the adoption of such an extensive new aid package. Economic data   Eurozone. The consumer price index in January rose by 0.2% versus December, while the annual inflation rate was 0.9%. The growth of the core inflation rate, excluding food and energy, amounted to 1.4% y/y in January. US. According to a second estimate, Q4 GDP grew 4.1% year on year (compared to Q3 2020). The number of initial jobless claims for the week was registered in the amount of 730 thousand, which is 111 thousand less than the previous week and 80 thousand less than analysts predicted. Home sales in the primary market in January increased by 4.3% compared to December and amounted to 923 thousand in annual terms, which is 73 thousand more than analysts had predicted. The volume of orders for durable goods in January increased by 3.4% versus the previous month. The base indicator, excluding civil aviation, grew by 1.4% over the same period. In January, thanks to payments of aid from the state, the level of personal income increased by 10% MoM, while in December incomes showed an increase of 0.6%. The level of personal spending in January increased by 2.4% compared to December. Key events this week On Monday, the level of business activity in the industrial sector in February will become known in the US, China and the Eurozone. On Tuesday, the level of inflation in February will become known in the Eurozone. On Wednesday, the change in oil reserves for the week will be published in the United States. On Thursday, data on retail trade and unemployment in January will be announced in the Eurozone and in the US the number of initial jobless claims for the week will be published. On Friday, the US will publish data on the trade balance for January, as well as the state of the labor market in February. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 15.02.-21.02.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week   Former Minister of Finance of Nigeria Ngozi Okonjo-Iweala will become the first woman and the first native of Africa to hold the post of Director-General of the World Trade Organization (WTO). As a Director-General with limited formal powers, 66-year-old Okonjo-Iweala will mediate international trade negotiations, engage in trade rule reforms, and fight protectionism that has intensified during the Covid-19 pandemic. Ngozi Okonjo-Iweala studied economics at Harvard after surviving the Nigerian Civil War as a teenager. She also recently received American citizenship. In 2003, Okonjo-Oveala returned to her homeland and twice (in 2003-2006 and in 2011-2015) headed the Ministry of Finance. It was her tenacity and negotiation skills that are believed to have helped secure the 2005 Paris Club of Nigerian debt relief deal with the Paris Club of creditor nations. Okonjo-Iweala also spent 25 years with the World Bank as a development economist, overseeing the bank's $ 81 billion operating portfolio and rising to the position of Managing Director. She also serves on the boards of directors of several large corporations, notably Twitter and Danone. All members of the WTO General Council, in which representatives of all member countries of the organization sit, approved her candidacy unanimously. The WTO, after six months of the Director-General absence, is in a state of partial paralysis, mainly because the Trump administration has blocked appointments to its highest appellate body, which acts as the global arbiter of trade disputes. But even before Trump, deals that need to be negotiated by consensus were often sluggish. At the same time, the United States and other developed WTO members argued that developing countries, especially China, cannot constantly demand exceptions to the rules and that the rules generally need to be revised to take into account the rapid growth of the Chinese economy. The minutes from the January 26-27 meeting of the US central bank showed that with a still weakened economy that may take a long time to fully recover. Federal Reserve officials discussed how to lay the foundation for accepting higher inflation in society, as well as the need for “Stay vigilant” and monitor for signs of stress in vibrant asset markets. Fed officials have discussed, among other things, platforms like Robinhood, which enable private investors to trade in the stock market. The members of the regulator's council said they are ready to maintain a soft monetary policy in order to improve the situation in the labor market, which is still not recovering from the impact of the coronavirus pandemic. Several meeting participants said they see price increases on the horizon for products that have been or may soon be restricted due to supply chain disruptions; others expected that a possible sharp return to normal activity levels could result in a one-off rise in certain prices. Economic data   Eurozone. According to the second estimate, GDP in the fourth quarter decreased by 0.6% relative to the third quarter of 2020, while the decline in GDP in the fourth quarter on an annualized basis (relative to the fourth quarter of 2020) was 5%. According to the results of the primary assessment of the PMI business activity index in February, the indicator increased by 0.3 points and amounted to 48.1. Of the indicators that make up the index, business activity in the service sector was 0.7 points lower, while the state of the manufacturing sector rose 2.9 points. US. According to the results of the initial assessment of the PMI index of business activity in February, the indicator increased by 1.1 points and amounted to 58.8. Of the indicators that make up the index, business activity in the service sector was 0.6 points higher, and the state of the manufacturing sector fell 0.7 points. The number of initial jobless claims for the week was registered in the amount of 861 thousand, which is 13 thousand more than the week before and 96 thousand more than analysts predicted. Retail sales rose 5.3% in January compared to December 2020, while retail sales were expected to grow by 1%. In turn, excluding data on gasoline and car sales from the indicator, retail sales in January rose by 5.9%. Key events this week On Tuesday, the Eurozone is to publish the final inflation data for January. On Wednesday, the US will report on new home sales in January, as well as changes in oil inventories for the week. On Thursday, the US is to publish a fourth quarter GDP recount, data on durable goods trade, and the number of initial jobless claims for the week. On Friday, the US will publish data on personal income and expenses of the citizens for January. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 08.02.-14.02.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week   The head of the Federal Reserve System (FED) Jerome Powell, speaking at the Economic Club of New York, said that the return of the US labor market to the levels reached before the beginning of the pandemic could take "many years." Jerome Powell explained that from the very beginning of the pandemic, the FED was concerned about its long-term implications for the labor market. Long periods of unemployment can seriously damage a person's life as well as undermine a country's economic potential. Past experience has shown that recovery can take many years. The head of the FED added that at the beginning of the pandemic, in February 2020, the US unemployment rate was 3.5%. In April 2020, it reached a maximum for the entire pandemic period - 14.8%, and by January 2021 the unemployment rate dropped to 6.3%. In 2020, U.S. GDP fell 3.5%, the worst since World War II. The US Senate vote on the impeachment of former President Donald Trump on Saturday, February 13, ended with the ex-head of state's acquittal. 57 out of 100 members of the upper house of the American parliament voted to remove Trump from the presidency. However, for the impeachment to take place, a two-thirds majority was needed, which corresponds to at least 67 congressmen. The impeachment proceedings against Donald Trump were launched by the House of Representatives of the Congress while Trump was serving as president of the United States. However, due to a lack of time, the Senate was forced to consider this issue after the inauguration of the new head of state, Democrat Joe Biden, who won the election. Economic data   US. The number of initial jobless claims for the week was registered in the amount of 793 thousand, which is 19 thousand less than the week before and 43 thousand more than predicted by analysts. The consumer price index in January increased by 0.3% against December, while the annual inflation rate was 1.4%. The growth of the core inflation rate excluding food and energy resources in January was also 1.4% y/y. China. The consumer price index in January increased by 1% versus December, while the annual inflation was negative and amounted to -0.3%. Key events this week On Monday, the Eurozone will publish data on the trade balance and industrial production for December. On Tuesday, the Eurozone is to publish data on the recalculation of GDP for the fourth quarter of 2020. On Wednesday, the US is to publish data on retail trade and industrial production for January, as well as minutes of the last Fed meeting. On Thursday, the US will publish the number of initial jobless claims for the week, as well as the change in oil inventories for the week. On Friday, the state of the business environment in February will be published in the Eurozone and the US. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 01.02.-07.02.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week   The Bank of England has kept its base interest rate at 0.1% per annum on its February meeting. The limit on funds for the purchase of assets was maintained at 895 billion pounds. The British regulator noted that the Covid-19 pandemic continues to negatively affect income, expenses, and the labor market in the UK. Inflation remains well below the 2% target. Vaccinations should help the UK economy recover quickly by the end of 2021, according to the British Central Bank. Nonetheless, the regulator stands ready to take further action, if necessary, to help the economy recover and keep inflation on target. The Bank of England noted that it will take time for most of the banks to change systems and processes and to implement strategic or tactical decisions. The Bank of England stressed that all this does not mean the inevitability of the introduction of negative rates. Nonetheless, the Bank of England will work with policy development companies to prepare all eligible firms for a negative rate regime in six months. Negative rates actually allow businesses and individuals to borrow money while receiving interest. At the same time, investing in bank deposits and other debt instruments brings losses to their owners equal to the negative rate. Such a monetary regime theoretically encourages investment in other exchange-traded instruments and businesses, as well as active spending, which should promote economic growth. However, negative interest rates have a further downward impact on banks' profitability, negatively affecting their financial performance. Economic data   US. The number of initial jobless claims for the week was registered in the amount of 779 thousand, which is 33 thousand less than the previous week and 51 thousand less than predicted by analysts. The final estimate of the PMI business activity index in January shows that it has risen by 3.4 points to 58.7. Of the indicators, that make up the index, business activity in the service sector was 3.5 points higher, but the state of the manufacturing sector increased by 2.1 points. The unemployment rate in January fell by 0.4 percentage points and amounted to 6.3% and the number of nonfarm payrolls amounted to 49 thousand, which is 1 thousand less than expected and 276 thousand more than a month earlier. Eurozone. The final estimate of the PMI business activity index in January shows that it has decreased by 1.3 points to 47.8. Of the indicators that make up the index, business activity in the service sector was 1 point lower, while the state of the manufacturing sector decreased by 0.4 points. The unemployment rate in December remained at the level of November at 8.3%. The consumer price index in January increased by 0.2% compared to December 2020, while the annual inflation rate was 0.9%. The growth of the core inflation rate excluding food and energy resources in January amounted to 1.4% y/y. According to preliminary calculations, GDP in the fourth quarter decreased by 0.7% compared to the third quarter, while on an annualized basis (compared to the fourth quarter of 2019), the GDP fell by 5.1% y/y. China. According to the Caixin Bank, in January, the PMI in the manufacturing sector fell by 1.5 percentage points to 51.5 p., In turn, according to the National Bureau of Statistics of China, the PMI Manufacturing in January was 51.3 points. Key events this week On Wednesday, data on the rise in prices for January will be published in China and the United States, as well as in the United States will report on the change in oil reserves for the week. On Thursday, the US will publish the number of initial jobless claims for the week. The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 25.01.-31.01.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week   At its first meeting in 2021, the US Federal Reserve kept its base interest rate at 0-0.25%. The regulator said in a statement that the Open Market Committee has decided to maintain its target range for the federal funds rate at 0-0.25% and expects it to be appropriate to maintain that target range until labor market conditions reach levels consistent with the committee's estimates of maximum employment and inflation is approaching 2%. In addition to keeping rates at current levels, the Fed plans to continue buying at least $80 billion in Treasury bonds and at least $40 billion in mortgage-backed securities monthly in the coming months until significant progress is made towards the maximum employment and price stability. The Fed stressed that the COVID-19 pandemic continues to put pressure on economic activity, employment and inflation and also poses significant risks to the economic outlook - both in the US and around the world. US Federal Reserve Chairman Jerome Powell said at a press conference following the first meeting this year that the US economy is far from fully recovering, and about 9 million people remain unemployed due to the pandemic. He also added that the economy is far from our employment and inflation targets and it will likely take time to make significant further progress. He explained that until these goals are achieved the US intends to pursue adaptive monetary policy. Powell reiterated that the outlook for the US economy remains "highly uncertain." He stressed that he does not expect inflation to rise much higher than the target level of 2%, but if it does the Fed "has the tools to address" the issue. The head of the Central Bank indicated that with a slight increase in this indicator, the authorities will not take any significant measures, but only monitor it. In its January report, the International Monetary Fund (IMF) improved its forecast for global GDP growth this year by 0.3 percentage points from its October estimates. According to analysts of the fund, this year the growth rate of world GDP will be 5.5%, in the October forecast this figure was 5.2%. In 2022, the IMF expects 4.2% growth. Last year, according to the fund's analysts, the world economy contracted by 3.5%, while in the fall, experts expected that by the end of 2020, global GDP would fall by 4.4%. The report says the upward revision of the forecast for 2021 by 0.3 pp reflects additional support measures in several large economies and expectations of stronger economic activity later this year due to vaccinations. According to the forecasts of the fund experts, the volume of world trade will increase by 8.1% this year and by 6.3% in 2022. In most countries, fiscal deficits are also expected to decline, driven by higher government revenues and lower spending as economic activity recovers. At the same time, the document notes that, in general, the approval of the countries' regulators of vaccines against coronavirus "gives hope" to overcome the pandemic, however, new waves of the spread of infection and new variants of the virus raise concerns in terms of economic forecasts. Economic data US. According to initial estimates, fourth-quarter GDP grew 4% year-on-year (compared to the third quarter of 2020), in line with analysts' expectations. The number of initial jobless claims for the week was registered in the amount of 847 thousand, which is 67 thousand less than the week before and 53 thousand less than predicted by analysts. The volume of orders for durable goods in December increased by 0.2% versus the previous month. The growth of the base indicator, which does not include civil aviation, was 0.5% over the same period. In December, the level of personal income increased by 0.6% m/m, while the level of personal expenses in December decreased by 0.2% versus November. Key events this week On Monday, the US, Eurozone and China will know the level of business activity in the industrial sector in January. On Tuesday, the size of the fall in GDP in the fourth quarter will become known in the Eurozone. On Wednesday, the Eurozone will report inflation numbers for January and the US will publish data on changes in oil reserves for the week. On Thursday, the US will know the number of initial jobless claims for the week. On Friday, the US will know the state of the labor market in January as well as the trade balance figures for December.     The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 18.01.-24.01.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week The European Central Bank (ECB), as expected, kept the base interest rate on loans at zero level, the rate on deposits at minus 0.5%. The rate on margin loans remained at the level of 0.25%. The ECB's Governing Council expects key rates to remain at or below current levels until inflation “confidently” approaches its target of just below 2%. The ECB also did not change the scope of the Pandemic Emergency Purchase Program (PEPP), leaving it at 1.85 trillion euros, as experts expected. The central bank will continue to buy back assets under this program, at least until the end of March 2022, and in any case until it considers that the crisis caused by the coronavirus pandemic is over. The ECB also intends to reinvest the proceeds from redeemable bonds under the PEPP at least until the end of 2023. ECB President Christine Lagarde said at a press conference after the ECB meeting that the coronavirus pandemic is likely to cause the economy to contract at the end of 2020 and put pressure on economic activity early this year, but this is in line with the ECB's forecasts. Lagarde noted that risks to economic growth are biased downward, but less pronounced. She also believes that the introduction of vaccines, which began in late December, provides more confidence in resolving the health crisis. However, it will take time to achieve herd immunity and further adverse events associated with the pandemic cannot be ruled out. In the first day at the office, the new US President Joseph Biden signed 15 decrees and orders canceling the decisions of his predecessor Donald Trump, as well as introducing new measures to combat the coronavirus pandemic. Biden overturned Trump's decree barring several predominantly Muslim countries from entering the United States and suspended construction of the wall on the border with Mexico, which under Trump was built around the clock until the January 20. Even during the election campaign, the Democrat promised to restore the country's membership in the Paris Agreement on Climate Change, which Trump announced his withdrawal from in 2017. The president also signed a decree ordering the migration authorities to stop trying to expel people who arrived in the United States as children with illegal immigrant parents from the country. The Trump administration spent four years trying to shake off this Barack Obama initiative known as the DACA program, though it ultimately failed in the courts. Biden also suspended the country's withdrawal from the World Health Organization, begun by his predecessor, and made the wearing of masks and physical distancing measures mandatory in all federal agencies and for government employees. The European Central Bank (ECB), as expected, kept the base interest rate on loans at zero level, the rate on deposits at minus 0.5%. The rate on margin loans remained at the level of 0.25%. The ECB's Governing Council expects key rates to remain at or below current levels until inflation “confidently” approaches its target of just below 2%. The ECB also did not change the scope of the Pandemic Emergency Purchase Program (PEPP), leaving it at 1.85 trillion euros, as experts expected. The central bank will continue to buy back assets under this program, at least until the end of March 2022, and in any case until it considers that the crisis caused by the coronavirus pandemic is over. The ECB also intends to reinvest the proceeds from redeemable bonds under the PEPP at least until the end of 2023. ECB President Christine Lagarde said at a press conference after the ECB meeting that the coronavirus pandemic is likely to cause the economy to contract at the end of 2020 and put pressure on economic activity early this year, but this is in line with the ECB's forecasts. Lagarde noted that risks to economic growth are biased downward, but less pronounced. She also believes that the introduction of vaccines, which began in late December, provides more confidence in resolving the health crisis. However, it will take time to achieve herd immunity and further adverse events associated with the pandemic cannot be ruled out. In the first day at the office, the new US President Joseph Biden signed 15 decrees and orders canceling the decisions of his predecessor Donald Trump, as well as introducing new measures to combat the coronavirus pandemic. Biden overturned Trump's decree barring several predominantly Muslim countries from entering the United States and suspended construction of the wall on the border with Mexico, which under Trump was built around the clock until the January 20. Even during the election campaign, the Democrat promised to restore the country's membership in the Paris Agreement on Climate Change, which Trump announced his withdrawal from in 2017. The president also signed a decree ordering the migration authorities to stop trying to expel people who arrived in the United States as children with illegal immigrant parents from the country. The Trump administration spent four years trying to shake off this Barack Obama initiative known as the DACA program, though it ultimately failed in the courts. Biden also suspended the country's withdrawal from the World Health Organization, begun by his predecessor, and made the wearing of masks and physical distancing measures mandatory in all federal agencies and for government employees.     Economic data US. The number of initial jobless claims for the week was registered in the amount of 900 thousand, which is 26 thousand less than the week before and 10 thousand less than predicted by analysts. According to the results of the primary assessment of the PMI business activity index in January, the indicator increased by 2.7 points and amounted to 58.0. Of the indicators that make up the index, business activity in the service sector was 2.7 points higher, and the state of the manufacturing sector increased by 2 points. Eurozone. According to the results of the primary assessment of the PMI business activity index in January, the indicator decreased by 1.6 points and amounted to 47.5. Of the indicators that make up the index, business activity in the service sector was 1.4 points lower, and the state of the manufacturing sector fell 0.5 points. The consumer price index in December rose by 0.3% versus November, while the annual inflation was -0.3%. The growth of the core inflation rate excluding food and energy in December amounted to 0.2% y/y. China. GDP in the fourth quarter grew by 2.6% relative to the third quarter, while yearly GDP growth (relative to the fourth quarter of 2019) amounted to 6.5%. Retail sales in December increased by 4.6% compared to December 2019, while the growth rate of retail trade was expected to be 5.5%. Industrial production in December increased by 7.3% compared to December 2019. The unemployment rate in December remained at the level of November, amounting to 5.2%. Key events this week The Davos Economic Forum will take place this week, this time in an online format. On Wednesday, the US will publish data on orders of durable goods in December, as well as changes in oil reserves for the week, in turn, the Fed will publish its decision on the key interest rate. On Thursday, the US will give a primary estimate of GDP growth in the fourth quarter, as well as publish the number of initial jobless claims for the week. On Friday, data on personal income and expenses of Americans will become known.   The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 11.01.-17.01.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week US President-elect Joe Biden presented a draft of measures to stimulate the American economy for $1.9 trillion. The plan has already been backed by Democrats in Congress. The president-elect's proposal includes a number of measures to stimulate the economy. About $400 billion of this amount is supposed to be allocated to the fight against the virus and for the vaccination campaign, $1 trillion - to provide assistance to the population, the rest - to help businesses especially hard hit during the pandemic. The package includes direct payments to Americans of $1.4 thousand per taxpayer. Payouts will reach $2,000 per person (along with a $600 check approved by Congress in December). Biden also proposes raising the minimum wage to $15 per hour and increasing the amount of weekly unemployment benefits. In accordance with the document, $350 billion is planned to be allocated to support local authorities at the state level. $170 billion should go to higher education institutions. The plan also includes measures to support small businesses. In addition, Biden proposes to allocate $50 billion for the COVID-19 infection testing program, and $20 billion for the national vaccination program. The head of the federal state of North Rhine-Westphalia Armin Laschet was elected as the leader of the Christian Democratic Union. The head of the ruling party is a potential candidate for the post of German chancellor, elections to the Bundestag will be held in September. The majority of the delegates at the meeting of the German Christian Democratic Union (CDU) party voted for the head of the federal state of North Rhine-Westphalia Armin Laschet to become the new party leader. 521 people voted for his candidacy, another 466 delegates supported the former leader of the faction Friedrich Merz. Four people abstained. In total, three people applied for this post, the chairman of the Bundestag Foreign Policy Committee Norbert Röttgen dropped out of the race in the first round. The results must be officially confirmed by mail voting. Until 2018, the party was led by Angela Merkel, after her - by Annegret Kramp-Karrenbauer, but the latter in February 2020 announced her decision to resign and refuse to fight for the post of German chancellor.     Economic data US. Consumer price index in December rose by 0.4% versus November, while the annual inflation rate was 1.4%. The growth of the core inflation rate excluding food and energy in December amounted to 1.6% y/y. The number of initial jobless claims for the week was registered in the amount of 965 thousand, which is 181 thousand more than the week before and 170 thousand more than predicted by analysts. Retail sales fell 0.7% in December versus November, while retail sales were expected to remain at the November level. In turn, excluding data on gasoline and car sales from the indicator, retail sales in December decreased by 2.9%. China. The consumer price index in December rose by 0.2% versus November, while the annual inflation was 0.7%. The trade surplus in December reached a record high of $78.14 billion. Exports in December increased by 18.1% compared to December 2019, while imports grew by 6.5% over the same period. Key events this week On Monday, China is to publish data on GDP growth in the fourth quarter, as well as industrial production, retail trade and unemployment in December. The inauguration of the new US President Joe Biden will take place on Wednesday. On Thursday, the US will report on the number of initial jobless claims for the week and the ECB will publish its decision on the key rate. On Friday, the level of business activity in January will be published in the Eurozone and the United States, where the change in oil reserves for the week will also become known.     The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Weekly financial market overview 04.01.-10.01.

  Konstantins Goluzins, CFA Head of Asset Management Phone.: (+371) 6700 0456 E-mail: trust@bib.eu LINKEDIN PROFILE   Main events of the previous week Debate on the results of the US presidential election, held at the Congress building in Washington on January 6, was interrupted by riots near the Capitol. Supporters of the current President Donald Trump, after his speech at a rally in the United States capital, broke through the barriers to the Capitol and clashed with police and guards. The demonstrators managed to enter the building. The congressmen were evacuated. A few hours after the riots, the building of the US Congress again came under the control of the authorities. Debate of the election results resumed. Senate Democratic and Republican leaders Chuck Schumer and Mitch McConnell condemned the storming of the Capitol. Schumer called the incident a stain on the country that will not be easy to wash off and McConnell added that the Senate will not be intimidated. After the storming of the Capitol by supporters of US President Donald Trump, the Democratic congressmen intend to initiate a second procedure for impeachment of the president. Democrats will submit a corresponding initiative in the House of Representatives of the US Congress on January 11. Lieu, who is pushing for the resolution, said a plenary vote is expected next week, but he and his associates prefer Trump to resign voluntarily or that US Vice President Mike Pence takes steps in this direction. The draft resolution accuses Trump of incitement to riot and describes him as a threat to national security, democracy and the constitution.     Economic data US. The number of initial jobless claims for the week was registered in the amount of 787 thousand, which is 3 thousand less than the week before and 13 thousand less than predicted by analysts. The unemployment rate in December remained at the same level at 6.7%, and the number of the non-farm payrolls fell by 140 thousand, contrary to expectations of an increase of 71 thousand jobs. Eurozone. The consumer price index in December rose by 0.3% against November, while the annual inflation rate was -0.3%. The growth of the core inflation rate, excluding food and energy, amounted to 0.2% y/y in December. The unemployment rate in November fell by 0.1 percentage points and amounted to 8.3%. Key events this week On Monday, December inflation figures will be published in China. On Wednesday, data on the growth of prices, as well as changes in oil reserves for the week will be published in the United States. On Thursday, China will publish figures on the trade balance for December, and the US will know the number of initial jobless claims for the week. On Friday, the US will release data on retail trade and industrial production for December.   The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Baltic International Bank becomes a European Company (Societas Europaea).

Conversion of Baltic International Bank (hereinafter referred to as the Company) from a Joint Stock Company (JSC) into a European Company (SE) was registered in the Commercial Register of the Republic of Latvia on December 21 of this year with a view to reinforcing the international dimension of the Company and promoting its international recognition in the European Union among existing and potential clients of the Company as well as among other international providers of banking and financial services. The name of the Company after the conversion is Baltic International Bank SE; in addition, the current corporate structure and governance have been preserved. The registered office of the Company after the conversion remains unchanged: 43 Kaleju Street, Riga, LV-1050, Latvia; its head office address is 6 Grecinieku Street, Riga, LV-1050, Latvia. The composition of the members of the Supervisory Board and the Management Board of the Company has not changed. The members of the Management Board and the Supervisory Board of the Company will continue to work under the same conditions as before, in compliance with the Charter of the Company, the Regulations of the Management Board of the Company and the Regulations of the Supervisory Board of the Company currently in force as well as other regulatory documents. The conversion does not affect the share capital of the Company and the rights of shareholders: the shareholders retain the same number of shares as prior to the conversion as well as all the rights vested in shareholders in accordance with law. The Company continues to conduct business as before.

Visitation Guidelines

Dear Clients, Please note that entry to Bank for our visitors by pre-arranged appointment only. You must wear face coverings (medical or non-medical masks), just like in any other indoor settings. We therefore encourage you to use remote banking services to the extent possible. Please consider whether there is a need for your physical presence.

LIBOR Benchmark Interest Rate Replaced in Agreements

By the end of 2021, Latvian bank contracts which use the LIBOR (London Interbank Offered Rate) short-term interest rate index as a benchmark will be changed and replaced with alternative indices (benchmark rates) such as EURIBOR. In a loan agreement, the bank lends and the client borrows money. An interest rate is set for the use of the loan, because the bank borrows this money for a set fee from investors, the financial market or interbank loans. Therefore, loan agreements have a benchmark rate which reflects the price of the money loaned to the bank, and the bank’s added interest rate, which reflects the bank’s expenses and risk. Historically, the benchmark rates have been linked to indices whose names include IBOR (Interbank Offered Rate). A European Union regulation on indices used as benchmarks in financial instruments and financial agreements, or for measuring the results of investment funds, the Benchmarks Regulation, was published in 2016 and applied in 2018. This regulation sets the requirements with which a benchmark rate must comply in order for it to apply to a loan agreement, including after the regulation comes into force. Meanwhile, a transition period was set for replacing those benchmark rates which do not comply with the requirements set out in the regulation. The regulation was set to avoid the risk of manipulation of benchmark rate setting methods in international financial markets, which negatively impacts both significant market participants and financial institutions in general, as well as all households. Latvian banks are developing solutions for their clients to successfully replace LIBOR in loan contracts where the aforementioned rate is used as the benchmark rate. Solutions developed and offered by the bank may vary, which is why Finance Latvia and its members will continue to explain the replacement of LIBOR with other benchmark rates to borrowers. Most frequently, the LIBOR EUR rate will be replaced with the EURIBOR EUR rate, but with regards to loans in US dollars, banks will most likely offer to refinance loans from USD to EUR, thus applying the EURIBOR EUR rate as the benchmark rate. For clients who receive their income in Euro, this will reduce the currency risk resulting from a difference in the currencies of the client’s income and loan agreement. We ask clients to be understanding, and to contact their bank’s financial consultant if they have any questions.

Baltic International Bank joins the Latvian Startup Association Startin.LV

Having regard to the role of startups in the overall development of the national economy, the importance of providing support to this sector and the prospects offered by joint work in the development of the startup culture, Baltic International Bank has become a member of the Association. “As a partner and mentor, the Bank is interested in the development of startups, and this also fits within the priorities of the Bank’s strategy: to be a financial partner for small and medium-sized Latvian companies, to use and support innovative financial solutions and to promote capital market development,” says Dace Dūklava – Kokina, Head of Strategic and Business Development. Commenting on the accession of Baltic International Bank to the Association, Jānis Rozenblats, Chairman of the Board of the Association, points out: “The Latvian Startup Association represents over 70 startups, investors and other industry players. Our goal is to strengthen the local ecosystem, help existing companies and promote the formation of new startups in Latvia. We have already established successful cooperation with banks in Latvia and we are glad that Baltic International Bank has joined the list!” The Latvian Startup Association brings together startups and their associations based on common values, with the aim of representing joint interests, speaking with one voice and educating the public about startups in Latvia.

Baltic International Bank closes the first half of the year with a profit of 274 thousand euro

Baltic International Bank has closed the first half of this year with a profit of 274 thousand euro. In Q2 2020, the Bank continued to be active, strengthening its position as a local capital bank, improving its operational performance and resuming lending. Viktors Bolbats, Chairman of the Management Board of the Bank, points out: “I am pleased that, despite the time full of challenges in the global economy, Baltic International Bank has closed the first half of the year with a profit. It is important that in Q2 we achieved the goal set for the Bank at the beginning of the year, and that is to resume lending. In the first half of the year, we approved loans totalling 5 million euro, and we see that lending to small and medium-sized enterprises, which is in the focus of Baltic International Bank, is significant for stabilising the national economy as a whole. The capacity of local capital banks allows them to understand the needs of domestic entrepreneurs and respond quickly, providing the necessary business support mechanisms for domestic entrepreneurs.” In the reporting period, the Bank strengthened its capital adequacy ratio, which reached 17.37%, and also maintained a high liquidity coverage ratio at 145%. The Bank closed the first half of 2020 with the following financial results (data on the Group is given in brackets): Profit: EUR 274 thousand (EUR 217 thousand); Total capital ratio (TCR): 17.37% (17.09%); Liquidity coverage ratio (LCR): 145%; Assets: EUR 201.05 million (EUR 200.72 million). As of 30 June 2020, the total customer funds in the Bank amounted to EUR 367 million (Annex 1) and assets under management reached EUR 70 million (EUR 70 million). The value of financial instruments in brokerage service was EUR 132 million (EUR 132 million). In Q2 2020, the net fee and commission income grew by 0.6% (0.6%) on a year-on-year basis and totalled EUR 4.22 million (EUR 4.22 million). In percentage terms, the increase was up to 64.6% (64.7%). The Bank’s high-quality liquid assets (assets carrying investment-grade credit rating and claims on the Bank of Latvia) totalled EUR 108 million (EUR 108 million) or 54% (54%) of the total assets. Investments in government bonds amounted to EUR 15.26 million (EUR 15.26 million) or 8% (8%) of the total assets. The Bank maintains a well-diversified structure of liquid assets represented by bonds (14%), claims on credit institutions (6%), claims on the Bank of Latvia (77%) and cash (3%). The liquidity coverage ratio (LCR) was 145%. The net stable funding ratio (NSFR), characterising the availability of a stable funding profile in relation to the composition of assets and off-balance sheet activities, reached 160%. As the Bank continued to implement its asset quality improvement and capital strengthening programme, as of 30 June 2020, the Bank’s Tier 1 capital ratio reached 14.66% (14.33%), while the total capital ratio (TCR) was 17.37% (17.09%), which substantially exceeds the overall capital requirement ratio of 13.50%. As of 30 June 2020, the Bank’s own funds totalled EUR 21.33 million (EUR 20.68 million). In the reporting period, for the second consecutive year, the Bank was awarded the highest scoring category – Platinum Category – on the annual Sustainability Index, confirming the compliance of the company’s activities with the principles of sustainability. The Platinum Category is awarded to companies that have fully integrated corporate governance into their operations and in which responsible persons have been appointed at both the managerial and executive levels. “It is an honour to become a winner in the Platinum Category for the second time, and simultaneously it is a confirmation that the concept of sustainability in the Bank’s operations is not merely a short-term phenomenon, but also a carefully thought-out and implemented strategy in accordance with the principles of ESG. Environmental sustainability, good governance and social issues are the issues that we have worked on persistently for a long time, transforming Baltic International Bank into a modern investment bank and introducing ESG principles at all levels of activity,” says Viktors Bolbats, Chairman of the Management Board the Bank. This year again, the Bank traditionally supported the ceremony of presenting the Annual Latvian Literary Award (LALIGABA) in the first half of the year and also continued work within the project Bibliotēka (Library) aimed at promoting reading. In the first half of the year, the Bank also carried on with the reconstruction of the Kalēju Quarter, renovating the complex of buildings between Kalēju and Vecpilsētas Streets. The financial report of Baltic International Bank for the 1st half-year is available here.

Baltic International Bank becomes a partner in a real estate development project in Old Riga

Baltic International Bank has become a partner and investor in an ambitious real estate project at 16 Smilšu Street, Old Riga. The project will be implemented in cooperation with partners, the brand A&B Apartment Inn Balticum of the company A Consulting SIA. Both small and larger apartments will be available for rent and purchase, depending on the interests and needs of the clients, after the renovation in the complex of three buildings, located on one of the main streets of the Old Town. In the words of Viktors Bolbats, Chairman of the Management Board of Baltic International Bank: “The real estate segment, especially the development of Old Riga, is a close concern of the Bank, since our office buildings are located here, and we are also working on the reconstruction of Kalēju Quarter. At the same time, the project at 16 Smilšu Street will become another step in the Bank’s operations aimed at developing this part of the Old Town and real estate together with partners, while providing construction specialists with new jobs, as well as expanding and supplementing the real estate market with a quality offer. This is a very beautiful complex of buildings, and after the completion of construction work, we will be able to offer a renovated, tasteful residence near a park, with all necessary urban infrastructure to anyone interested”. During the implementation of the project, Baltic International Bank will work in partnership with the entrepreneur Aleksandrs Zindmans, owner of the A&B Apartment Inn Balticum brand: “Riga and Old Riga play a special role in my life, and I am glad that Baltic International Bank has become a partner with which we will be able to carry out work on the renovation and reconstruction of this property. We estimate that after the completion of the work, the market will be supplemented with apartments ranging from ​​27 square metres, which are more suitable for young and ambitious people, for whom this is likely to be their first home, to spacious apartments of up to 100 square metres.” After reconstruction, the building will be available to those interested at the end of 2021. Baltic International Bank is currently actively implementing renovation works in Old Riga between Kalēju Street and Vecpilsētas Square – in Kalēju Quarter, where it is planned to invest EUR 12 million over five years. [gallery columns="8" link="file" size="large" ids="36871,36880,36868,36874,36865,36862"]

Global Finance names Baltic International Bank as the Best Digital Bank in Latvia

Baltic International Bank has been announced a winner of World’s Best Digital Bank Awards 2020 by Global Finance and recognised as the Best Digital Bank in Latvia. “We are pleased and honoured that our work has been appreciated at the international level! This victory is yet another indication that the development strategy chosen by the Bank was correct and that we have created the product our clients need. The title of the Best Digital Bank in Latvia is additional encouragement to continue along the path of active work on improving digital services, thinking about the interests and needs of our customers,” says Jānis Osis, Head of Digital Channel Development of Baltic International Bank. Winning Round One of World’s Best Digital Bank Awards 2020 and receiving recognition as the Best Digital Bank in the country makes it possible to continue participating in Round Two of the competition in which Baltic International Bank aims for the title of the Best Digital Bank in Central and Eastern Europe. In April this year, Baltic International Bank introduced the new Internet Banking, offering improved functionality, increased user friendliness as well as updated security solutions. The Internet Banking of Baltic International Bank provides for multilevel signing of payments and multilevel approval of applications as well as for using the function of instant payments, which can be selected from the list of beneficiaries. A smart payment form that adapts itself depending on the information entered by the customer has also been introduced. To process several payments in a quick and easy manner, the Bank has implemented payment import and payment summaries export, a search function and simultaneous approval of several payments.  Over the twenty-one years of its existence, World’s Best Digital Bank Awards has become one of the most prestigious competitions, and receiving an award in any segment of the competition is considered one of the highest recognitions in the industry, demonstrating excellence in digital financial services.

Baltic International Bank issued a loan of EUR 1.2 million for a real estate renovation project

Continuing the development of the lending segment, Baltic International Bank issued a loan in the amount of EUR 1.2 million for a real estate development project at 63 Dzirnavu Street, Riga. The project provides for the renovation of residential buildings and further income-generating activities through the sales and rental of modern apartments. The Bank’s funding will be used to renovate the building’s façade and interior decoration, resulting in the development of 59 apartments. This project involves the shaping of apartments for which the developer and the Bank see potential in terms of sales or rental under the current real estate market conditions. “The financing provided will not only enable the creation of jobs for the employees involved in the development of the project and the reconstruction of the building, but also contribute to the improvement of the urban environment as well as increase the supply of the rental market in the capital. Crediting support for the segment of small and medium-sized enterprises is one of the priorities of Baltic International Bank’s operating strategy, and 5 million euro was approved for the issuing of loans in the first half of the year,” Viktors Bolbats, Chairman of the Management Board of Baltic International Bank, points out. Commenting on the transaction, Mārcis Dobrājs, real estate developer and representative of D63 SIA, emphasises: “It is gratifying that even under the current market conditions there are banks that see the opportunity of implementing promising projects and are ready for strategic cooperation with entrepreneurs”. As previously reported, Baltic International Bank closed the first half of this year with a profit of 273 thousand euro.

Small and medium-sized enterprises can receive support to access capital markets

Baltic International Bank invites small and medium-sized enterprises (SMEs) to apply for the attraction of financing via stock exchange as part of the European Union funds support program “Support for attraction of financing for small and medium-sized enterprises (SMEs) in capital markets”. Aim of the program is to help SMEs in Latvia to attract financing for their development via capital markets, allowing the enterprises to boost their international competitiveness and promote capital markets development of Latvia. This is the first program of this type in Baltic region. Bank offers to provide emission organizer services – develop debt securities provisions, prepare emission prospectus – documents required for the registry of emission in the authorised institutions, organize cooperation of the issuer with the stock exchange, as well as secure technical base for the performance of debt securities transactions. We are offering analytical and informative materials for the attraction of financing as well as maintaining of relations with investors both during the emission preparation period and also after the issuance of bonds in the secondary market. Baltic International Bank, Head of Corporate Finance Oto Davidovs explains: “Capital market development and bond issue of the enterprise is one of the sources of receiving external financing and for many years already it is used all around the world as an efficient and beneficial alternative to attract financing. It is very good solution for the companies with the growth ambitions exceeding the financing attraction possibilities banks can offer.” In comparison to Western Europe capital market of the Baltic countries is in its early development stage, although I have to emphasize that lately market can be characterized with rapid growth and bond issue as a tool for the receiving of the development financing for the company is growing in popularity.Oto Davidovs   In the frame of the European Union funds development period support program will be implemented as the pilot project and the total initially available financing is planned in the amount of EUR 1’ 000’ 000, meaning, EUR 800’ 000 EUR for the support of issuing of shares and EUR 200’ 000 EUR for the support of debt securities (bond issue). It is planned that open tender for the attraction of financing will be organized quarterly. Administrator of the program is Central Finance and Contracting Agency (CFLA). Support will be provided for the covering of the following preparation costs: Service costs of the organizer of emission (investment bank); Costs of preparing the emission prospectus or the securities registration documents; Costs of Due Diligence; Consulting costs of legal, financial, taxes, auditors, certified consultants. Support of SMEs is issued as a form of grants covering 50% from the eligible costs but not more than EUR 100’ 000 EUR for one applicant in the event of issuing of shares and not more than EUR 20’ 000 in the event of issuing the debt securities (bonds).

Valeri Belokon: The existence of our nation in 200 years depends on literature

Valeri Belokon, the main shareholder of Baltic International Bank and the long-standing patron of Latvian literature, who also supports the current project ‘Library’ aimed at promoting reading, believes that the existence of the literary industry is of great importance for our entire nation. Preserving literature, we preserve the Latvian culture and language. What do we leave behind, apart from language? We leave the thoughts of our people. If we lose the word, we lose the thought. Books should be published to enable us to keep a big, complete, philosophical thought.Valeri Belokon   In the seventh interview in a series of video stories within the framework of the ‘Library’ project, Valeri Belokon gives a peek into his private library and tells about his personal motivation prompting him to provide support. The books have everything that we need for our life and for the life of our soul,’ he says. ‘Support to literature is my vocation and the voice of my heart. A person can support literature only if he or she understands it and needs it. It is not that literature goes with hat in hand.Valeri Belokon   The patron also expresses his views on the role of literature in the preservation of the Latvian language. ‘We are in a situation where we need to maintain our language and culture. I believe that this is what we are doing at the moment and what definitely have to keep doing.’ In an interview with Baltic International Bank, the main shareholder points out, through laughter and, at the same time, very seriously, that all the answers to questions can be found in books. ‘Nowadays, people think that Google has all the answers, but I have to disappoint them by saying that this is actually not true. Books provide all the answers,’ he says. Watch full interview The full interview with Valeri Belokon is available on the home page of the ‘Library’ project at www.manabiblioteka.lv. There you can also find six other interviews published before: with writers Nora Ikstena and Māris Bērziņš, Zbigņevs Stankēvičs, metropolitan archbishop of the Roman Catholic Church, Andris Vilks, director of the National Library of Latvia (NLL), Kārina Pētersone, director of the Latvian National Library Support Society, and Vaira Vike-Freiberga, former president of Latvia. In the coming months, it is also planned to publish an interview with Uldis Bērziņš, poet and translator, Imants Lancmanis, Latvian art historian and heraldry specialist, and Sanita Stinkule, head of the Department of Ethnography of the National History Museum of Latvia. The project ‘Library’ has been created by Baltic International Bank, a long-standing patron of Latvian literature. The ‘Library’ initiative proposes to tell stories about the importance of literature in people’s lives, stories about personal libraries, their content, emotional and professional value. The development of Latvian literature is one of the long-term public support endeavours of Baltic International Bank. Believing that knowledge of culture and history of one's country is the basis of the national identity of each nation, Baltic International Bank financially supports the publishing of books of national importance and implementation of literary projects.

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