Aizkraukles Banka will award ten interest-free loans on the occasion of its tenth anniversary

September 10, 2003 / Banking

To celebrate the tenth anniversary of its foundation, AS "Aizkraukles banka" (AB) today launches an unprecedented campaign, offering for raffle ten interest-free mortgage loans to the clients of the bank. According to AB’s long-term operation strategy for private individuals, the bank will gradually become a specialized mortgage loans bank and this campaign is one of the steps for attracting new clients.

«Isn’t an interest-free loan an excellent present for those who have decided to apply for a loan at out bank?» Deputy Head of AB’s Client Service Division, Aivars Rauska, asks. He reveals that "being afraid of the burden of interest payments people sometimes do not want to take loans. If to add up what one will have to pay over the years for the use of a long-term loan, in Latvia the result is rather impressive, sometimes equal to the value of a good car."

AB expects the eventual "prize fund" to reach 80 thousand lats.

First time in Latvia — a possibility to get an interest-free mortgage loan

AB’s interest-free loan campaign will be effective for almost three months — from 10 September to 30 November. Any private individual, submitting an application for mortgage loans at AB during this period of time and concluding a loan agreement with the bank by 10 December, may become a participant of the campaign. The interest-free loans will be drawn among those to whom AB will have already granted the loan within the mentioned period of time, which in September are offered by the bank for the annual interest rate of 4.9%.

The loans secured with real estate may participate in the campaign. The aim of the loan should be purchase, refurbishment or construction of a house or flat. The loans granted for re-financing mortgage loans at other banks will participate in the campaign as well. You can get more information on the rules of the campaign at AB’s home page — www.ab.lv.

There will be two raffles

Among those to whom AB will grant mortgage loans, four of the interest-free loans will be drawn on 15 October and six more — on 12 December. The loan agreements concluded within the period from 10 September to 10 December could also participate in the second raffle, with the exception of those who had already won in the first raffle. The first raffle will be only for those who will have quickly decided about the loan and will manage to conclude the loan agreement with AB by 14 October.

It is planned to organize the raffles openly, in the presence of mass media representatives. In order to ensure transparency of the campaign results, each campaign participant will confirm their consent to that information about them as AB’s clients may be made public in the event they win.

"The bank protects confidentiality of its clients," stresses A. Rauska, at the same time admitting that "this, however, is a special case. Such a campaign cannot be implemented without naming its winners."

As of the end of July, AB’s total loan portfolio was 50 472 467 lats and it has increased by 20.3% since the end of the previous year. The amount of mortgage loans granted by AB reached 15 883 228 lats as of the end of July, this year seeing an increase of 45.7%. During this campaign the bank hopes to increase the amount of its credit portfolio by at least 10 million lats.

AB is currently the sixth largest bank in Latvia as to the amount of assets.

Aivars Rauska,
Deputy Head of Customer Service Division of Aizkraukles Banka