Baltic International Bank: In April, Subordinated Debt Increased by LVL 2.44 million
In April 2013, Bank strengthened its financial condition through increasing subordinated debt by LVL 2.44 million, which positively affected Bank’s key performance indicators (KPIs). The volume of subordinated deposits totalled LVL 6.57 million as at 30 April 2013. As a result, Bank achieved a 16.65-percent capital adequacy ratio (CAR).
Subordinated deposits provide a great opportunity for customers to earn higher interest compared with standard deposits. Latvia’s Immigration Act (as amended, with effect from 1 July 2010) enables foreign nationals to reside in Latvia 5 years on the basis of a temporary residence permit if they make investments in a secondary capital of Latvian commercial banks, known as subordinated debt investments.