Announcements

Date: 20.11.2009 - 13:21 (GMT+3) , Exchange: RIG , Company: LMB

LMB: Mortgage bank to increase its share capital (corrected)

Latvijas Hipoteku un zemes banka         Company Announcement         20.11.2009

Mortgage bank to increase its share capital (corrected)

Correction: total volume of the share capital in the first paragraph corrected

In accordance with the decision of the bank's shareholder, the State
Joint-stock Company “Mortgage and Land bank of Latvia” (“Latvijas Hipotēku un
zemes banka”) has increased its fixed capital by 43 290 000 lats; thus the
total volume of the share capital has reached 121 320 911 lats. 

Consent to the Mortgage bank's equity capital increase was given also by the
European Commission. 

The increase of the Mortgage bank's equity capital supports the implementation
of the internally detached development banking activities (state aid
programmes). The capital increase is effected, using the funds of the European
Regional Development Fund, transferred to the bank already before, which are
being used for lending to entrepreneurs under target programmes. 

The European Commission has also given its consent to the Mortgage bank's
equity capital increase by 29.5 million lats that took place in January of this
year, thus acknowledging that the bank has complied with all the requirements
of implementation of state aid programmes.