KIB's SME Lending Tops €725M Despite High Interest Rates
The total amount issued to SMEs by AS 'Kredītinformācijas Birojs' (KIB), the country's largest credit history database manager, reached over €725 million. Despite a slight increase in borrowers and contracts, interest rates remained high, limiting loan growth.
In 2024, KIB saw a less than 2% increase in the number of borrowers and newly concluded contracts. However, 1.5% of borrowers were more than 60 days late in the first year with a debt of at least €150. Interest rates remained high in the second half of 2023, which limited loan growth to SMEs.
Limited liability companies (LLCs) made up 91% of SME borrowers. They predominantly used financial leasing (41%), operational leasing (20%), and business credit cards (17%). The trade sector overtook agricultural and forestry companies as the most financed in 2024. Trading, agricultural and forestry, and professional services businesses were the most frequently credited.
KIB's total SME lending reached over €725 million, with a slight increase in borrowers and contracts. Despite challenges, the trade sector led financing, and LLCs dominated borrowers. Energy, hospitality, IT, and financial sectors showed significant growth in clients.
