Corporate lending in Latvia experiences one of the fastest growth rates in the eurozone

After a prolonged period of caution, the Latvian corporate lending market is showing signs of a convincing recovery in 2025, driven by falling interest rates and entrepreneurs' growing willingness to invest in development. The corporate lending market has become one of the fastest growing in the eurozone, and non-bank financial service providers such as Cityfinances are playing a decisive role in reducing the financing gap in the SME segment.

Data included in the Bank of Latvia's "Financial Accessibility Report 2025" indicate a significant turning point in lending. According to the latest financial report, in the first eight months of 2025, the balance of loans issued to non-financial companies grew by 18.6%, which significantly exceeds the GDP growth rate. This growth is based on several factors. The change in monetary policy in the euro area has undoubtedly played a major role – the fall in EURIBOR rates has created more favorable borrowing conditions.

These favorable conditions have encouraged faster borrowing, and the Finance Latvia Association has found that the growth in corporate lending in Latvia has been one of the fastest in the eurozone.

Although most corporate financing is provided by commercial banks, lenders such as Cityfinances are becoming increasingly important partners, especially in serving SMEs that need fast, flexible, and smaller corporate loans.

"The year 2025 marks a transition from caution to growth. However, many small businesses still have limited access to bank financing due to complex procedures or insufficient collateral. Moreover, in a dynamic business environment, companies need money immediately, without wasting time on bureaucratic formalities or trips to the bank. Since Cityfinances deposits money into the company's account on the day the application is submitted if the assessment is positive, merchants are happy to take advantage of this opportunity to obtain funds," comments Ivars Vītols, CEO of Cityfinances. 

With inflation remaining moderate and labor market indicators stable, lending growth will continue in 2026. 

"We expect companies to increasingly seek targeted financing that supports modernization, digitization, and sustainable projects. Cityfinances is ready to become the main support instrument in this segment, offering customized solutions that promote the competitiveness of companies at the regional and global level," adds I. Vītols.

Cityfinances is a Latvian capital company specializing in issuing loans to businesses. During its 10 years of operation, Cityfinances has issued loans to companies in the amount of at least EUR 300 million, helping more than 3,000 companies from a wide range of industries to implement development projects. A significant advantage of Cityfinances is the speed with which it issues financing. Within five minutes of submitting an application, the company receives a response, and if the assessment is positive, the loan is transferred on the same day.

More information: www.cityfinances.lv