COVID-19: What are the short-term and long-term implications on lending

The ongoing corona crisis has a major impact on our economy. And while the governments of Latvia, Lithuania, and Estonia have eased some of the policies, as of today, it is still unclear for how long and how severely the economy will be affected. Governments across the world have launched comprehensive rescue packages to help companies secure liquidity. Another way to ensure short-term liquidity can be reached along with professional lenders.

What lenders observe and how they act during the COVID-19 crisis

During the last two weeks we and our colleagues across the world have been in contact with various lenders to assess their willingness to provide capital and to receive their assessments of future economic development. Thanks to our colleagues at Oaklins Germany, we can share a panel of insights from major commercial banks, private debt providers as well as special situation funds.

Increased focus on portfolio management is certainly one effect. However, we remain active in the primary market and are prepared to support fundamentally good companies with our financing solutions even in these difficult times. CO-HEAD OF A LEADING EUROPEAN PRIVATE DEBT PROVIDER

As investor and public sentiment turns from grim to a more positive one, 55% of addressed fund providers believe that we will have reached the pre-crisis level of funding and financing in 12 months' time. Read the full findings of our German colleagues here.

Oaklins Latvia Debt Advisory services

As liquidity needs of local companies in Latvia have also increased due to decreased revenues, interruptions in supply chain or even total business stoppage, Oaklins' team in Latvia has been actively engaged in Debt Advisory, including fundraising from state development finance institution Altum. Our team has direct contact with all major professional lenders in the Baltics and can assess the situation in your business quickly. For more information, please reach out to us:

Jānis Lasmanis Partner
Tel.: +371 26 559 544
Valērija Lieģe Partner
Tel.: +371 29 178 061
Reinholds R. Razums Associate
Tel.: +371 29 466 611

About Oaklins

Oaklins is the world’s most experienced mid-market M&A advisor, with over 850 professionals globally and dedicated industry teams in more than 45 countries. We have closed 1,700 transactions in the past five years.

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