From left: Ainars Ozols CEO of SEB in Latvia , Katarina Fyrsjo head of corporate banking SEB, Ilze Bukulde corporate banking SEB and Andris Krecers CEO of Vika Wood

On Friday July 9, 2010, SEB Bank and the biggest sawmill in Latvia Ltd. Vika Wood signed an agreement on long-term loan amounting to 7 million EUR for purpose of modernization and improvement of the factory.

As the representative of SEB Bank Agnese Strazda informed, these 7 million euros are a loan to the company, but in its turn SEB Banka and Ltd. Vika Wood have also signed a guarantee agreement worth LVL 1.05 million in order to receive EU Structural Funds advance payments from Investment and Development Agency of Latvia.

The funding will be used to expand and modernize Ltd. Vika Wood's factory according to market demands. Also financial help from EU Structural Funds is used in order to carry out the project.

"Since the foundation of the company in 1997 we have increased our production capacity nine times. It was possible because of company's inner policies and ability to obtain financial help in the right time," says the chairman of the board of Ltd. Vika Wood Andris Krecers.

The president of SEB Bank Ainārs Ozols indicates that even during the years of economical recession Ltd. Vika Wood was able to ensure sufficient volumes of production.

Last year the company's production reached the volume of 274 thousand cubic metres from which 93.4% were exported to 25 different countries, mostly to Japan – 26.9%. The calculated and paid taxes for year 2009 are more than 2 million lats. Ltd. Vika Wood employs 179 people.