May 31 2010, no 296
31.05.2010, 18:59
Highlights from this issue:
TOP STORIES
- Lured by a LVL 144m Latvian government tender which could serve as a springboard for further expansion, Canadian railway equipment giant Bombardier has joined forces with the local train manufacturer RVR. If the pair bags the government contract, the deal could give a major boost to the Latvian economy. (page 2).
- In line with the overall positive trends in the Latvian economy, exports are picking up speed - but the imports are growing just as surely, and it remains unlikely that the trade balance will turn positive any time soon. Moreover, a closer look at the Latvian exports reveals more caveats (page 13).
- Even though it is facing closures in the Baltic market, Latvia's largest home-grown cafe chain Double Coffee seeks expansion in Russia and Ukraine, claiming that the Eastern markets are more attractive anyway (page 8).
MANUFACTURING
- After impressive performance in 2009, Latvian pharmaceutical companies once again report increased profits for Q1 2010.
FINANCE
- Hipoteku banka, the other state-owned bank in Latvia, is to receive a total makeover that will transform it into a development bank
- Having lead a long and troubled life, marred by accusations of money laundering, Latvia's smallest bank VEF banka is stripped of its licence
- Swedish Swedbank restructurises its Baltic operations, concentrating its product development in Sweden
- The former vice president of a failed bank convicted of large-scale fraud
FOOD & AGRICULTURE
- Eco cosmetics producer MADARA expands into soft drink business with a line of sodas featuring rose and pumpkin flavours
- Estonian meat producer Uvic abandons its Latvian subsidiary after a dispute with its creditors
PROPERTY & CONSTRUCTION
- Norwegian investors consider building a EUR 40m hotel in Riga
- Former Latvian PM Maris Gailis sends his posh but troubled real estate project to American investors
- Developer of an ambitious high-rise apartment complex undergoing insolvency process
RETAIL & SERVICE
- While Latvian cafe businesses shrink in Lithuania, Lithuanian Coffee Inn is determined to enter the Latvian market
- Norwegian retail park operator Linstow Center Management teams up with half-Norwegian DnB NORD Banka to launch a loyalty/banking co-branding card
IT & MEDIA
- Largest Latvian motion picture studios team up, hoping to attract Hollywood big shots. Meanwhile, they are ready to settle for sci-fis
- Latvian telecom operator Lattelecom, also the winner of the digital TV rollout bid, starts limited 3D TV broadcasts
TRANSPORT & LOGISTICS
- Riga Airport now has two full ground service providers: itself and the ambitious new startup North Hub Services, the winner as well as the only applicant of a government tender
- Belarusian Minister of Transport promises another international railway connection from Riga - to Belarusian capital Minsk
- EUR 92.17 makeover seeks to eliminate a bottleneck in an East-bound railway route
ENERGY & ENVIRONMENT
- Local investors mull bio-diesel plant for Liepaja, western Latvia
ECONOMY & POLITICS
- Latvia comes up with new ways how to curb shadow economy: instead of repressive measures, it is now to provide incentives
- Latvian president Valdis Zatlers believes that Latvia is a success story in crisis management
EVENTS (Riga)
- SCC Business Lunch, 2 June
- DBHK Award Ceremony, 3 June
- DCC Summer Party, 6 June
- DBHK Conference and Business Meetings, 7-11 June (Tallinn, Riga and
Vilnius)
- AmCham Luncheon, 8 June
- DBHK Members Event, 10 June
- BCCL Pre-Jani Celebration, 15 June
- SSE Executive Education, 15-18 June
- DBHK Members Event (Liepaja), 16 June
KEY FIGURES
- Wages, real earnings, foreign trade, money supply, lending, inflation, interest rates, consumer price index, currency, stock exchange, prices of key commodities, retail trade, industrial output, producer prices, GDP, current account, foreign direct investment and key economic data forecast 2010-11.