On decision to increase share capital of Hipoteku banka


On Tuesday, March 23, The Cabinet of Ministers of the Republic of Latvia voted
to increase State Joint-stock Company's “Mortgage and Land bank of Latvia”
(“Latvijas Hipotēku un zemes banka”) - further as „Hipoteku banka”, share
capital by LVL 72,8 million by capitalizing Bank's liabilities against Nordic
Investment bank. Thus the total volume of the share capital has reached 191 601
311 lats. Increase of the share capital of Hipoteku banka goes in line with law
on the state budget year 2010. 

Nordic Investment bank financing are and still will be scheduled for crediting
within the Programme for Improvement of Competitiveness of Businesses. Funds
invested in the share capital of the Hipoteku banka stays with the Bank and
they will used to crediting businesses. The share  capital is increased to
strengthen Hipoteku banka capital basis taking into account overall situation
in financial markets when credit portfolio quality has worsened due to
financial crisis and provisions should be made. 

Hipoteku banka Capital adequacy ratio on December 31, 2009 was 12,8%. Hipoteku
banka has Moody's investment grade rating Baa3.