Forestry Ideas · 2010 · Vol. 16 · No. 1
INVESTMENT IN FORESTRY AND THE ROLE OF BANKS IN ITS ASSURANCE IN LATVIA
Authors
Evija Grege-Staltmane
Affiliation
Forest Faculty, Latvia University of Agriculture. Dobeles street 41, LV - 3001, Jelgava, Latvia. E-mail: evija_g2002@yahoo.com
Abstract
The role of investing for each country's welfare is obvious. The international capital may come into a country's economics through international investments, different funds, and also through banks. To enable forestry to progress successfully and be competitive, some regular and stable investments are needed for its development. For the banks in Latvia, forestry has not been the priority sector in recent years. Understanding the special role of bank loans in forestry, in November 2009, a social research was carried out on the basis of a questionnaire in order to understand the attitude of the Latvian banks towards the forest land as a loan. The research revealed the strong and the weak sides of forestry, as well as some possible opportunities and threats in Latvia from the point of view of the banks. The results of the survey showed that banks consider forestry to be a very risky sector and they do not plan to deal with it in the near future.
Key words: banks, investments, forest value, forestry.