As many as 55% of small and medium enterprises in Latvia (SMEs) do not use any foreign capital, representatives of the Luminor Bank have told the LETA news agency after conducting a survey on the matter.
Most companies that do seek foreign capital, in turn, have indicated that the amount of raised financing has not changed during the previous year.
Ilze Zoltnere is director of the Luminor Corporate Department, and she explains that the main reason why companies do not seek foreign capital is a lack of knowledge about where to find it. Fundamentals of corporate governance may also be an obstacle, because problems in this area may make it impossible to qualify for foreign funding.
Among companies raising foreign capital for business operations or development, 715 said that the amount has not changed, 18% that it has increased and 9% that the amount of capital has declined.
Source: BNS
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