On January 8, AmCham hosted its first speaker luncheon of 2025, featuring Uldis Cērps, CEO of Finance Latvia Association to discuss the latest developments in the financial sector.

In a lively discussion, moderated by AmCham Vice President Guntars Krols, the role of banking in furthering economic growth was discussed, including topics of capital access, competitiveness, and the investment environment.

Mr. Cērps spoke on the banking system and its role in financing the economy. Although there are several factors currently limiting credit growth, the share of total corporate sector credit is similar to that of the euro area, and the credit growth was around 5% with a total loan portfolio of about EUR 16 Bn in 2024. According to Mr. Cērps, the growth potential for credit is limited due to the small size of the corporate sector.

In order to facilitate access to funding and economic growth, he suggested improving the following elements: institutions, investment, and innovation: 

- Enhancing institutional quality through predictable economic policies, a stable tax system, transparent public procurement, and fair competition will make the country more internationally competitive.

- Focusing on developing capital markets, increasing the risk appetite for savings, and improving financial literacy are key areas in attracting more investment and stimulating economic growth.

- Supporting the entire lifecycle of innovation is essential, from promoting STEM education to transferring innovations to the business environment and supporting the ecosystem that finances new innovative companies. This will drive technological advancements and economic development.

The conversation that followed his remarks highlighted the necessity of strategic measures to enhance economic growth. Key points included increasing productive investment, strengthening capital markets, taking a structured approach to large-scale investment projects, and encouraging Public-Private Partnerships.

Click HERE to read his full speech.  

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