Basic Information
Altum, the full name of "JSC Development Finance Institution Altum" (JSC Development Finance Institution Altum), is a Latvian state-owned development financial institution established in 1993 as "JSC Mortgage and Land Bank of Latvia". According to the history of Altum, it changed its name to Altum on January 1, 2014, and on April 15, 2015 it became a unified entity through the merger of three institutions (the Latvian Development Finance Institution, the Latvian Guarantee Agency and the Rural Development Fund). Its headquarters are located in Riga, Latvia, at Doma laukums 4, Riga, LV-1050. Altum is wholly owned by the Government of Latvia, and the shares are held by the Ministry of Finance (40%), the Ministry of Economy (30%) and the Ministry of Agriculture (30%). It covers the whole territory of Latvia through 5 main branches and 16 secondary branches (Development Planning Consulting Center), providing services to businesses and individuals.
Altum is regulated by the Latvian Financial and Capital Market Commission (FKTK) and complies with regulatory requirements such as the Law on Development Financial Institutions and the Law on Public Capital Shares and Corporate Governance. Altum does not offer traditional deposit services and therefore does not participate in the standard deposit insurance program. No significant compliance issues have been identified recently, and its 2015 restructuring process was successfully completed, indicating the stability of its operations.
Financial healthAltum's
financial health is reflected in key metrics in its annual report. According to Altum's financial information, its capital adequacy ratio (measured by tangible common equity/total tangible assets under management, TCE/TMA) is 21.6% (2024), a slight decrease from 23.4% in 2023 but still above the international standard (typically 8-10%). The liquidity coverage ratio (180 days) is 324% (2024), indicating that it is extremely liquid and able to cope with short-term funding needs. The non-performing loan ratio is not explicitly disclosed in public information, possibly because Altum, as a development finance institution, has a loan portfolio that is more focused on policy support than traditional commercial loans.
Deposits &
LoansAltum does not offer traditional deposit products, such as current accounts, time deposits, or high-yield savings accounts. Its primary function is to support economic development through financial instruments, rather than to absorb deposits from the public. Therefore, the deposit rate or related products are not applicable.
LoansAltum
offers a wide range of loan and guarantee products, with a focus on supporting small and medium-sized enterprises, rural enterprises and specific groups of individuals. According to Altum's service page, its main products include:
corporate loans: support for start-ups, digital transformation and innovation projects, with loan amounts ranging from €100,000 to €5 million, with interest rates typically starting at 2.5% (e.g. digital loan programs) and may be reduced by European Investment Bank (EIB) guarantees.
Housing guarantees: guarantees for the purchase or construction of houses for families with children, young professionals (under 35 years of age) and members of the Latvian National Armed Forces up to 20-25% of the loan, with a maximum transaction size of 300,000 euros.
Energy Efficiency Loans: Supporting businesses and energy service companies (ESCOs) to implement energy efficiency projects with repayment periods of up to 15 years, with competitive interest rates guaranteed by EIB.
Student loans: Tuition and living expenses loans for EU citizens, which can be applied for through a partner bank, depending on the bank.
Loan thresholds vary from project to program and typically require a business plan, financial statements, or proof of identity (e.g., proof of resident status for a home purchase guarantee). Flexible repayment options, such as a 12-month grace period, are available in some programs, such as COVID-19 impact mitigation loans.
List of common feesSince
Altum is a development finance institution, its services are usually subsidized by government or EU funds, and the fee structure is different from that of traditional banks. The public information does not clearly list standard fees, such as account management fees, transfer fees, or ATM withdrawal fees. For example, through Citadele Bank, Altum's housing guarantee waives mortgage registration fees and there are no loan refinancing fees. Possible fees (such as loan application fees or guarantee fees) vary from project to project and users are advised to contact Altum directly (Tel: +371 6777 4010, email: altum@altum.lv ) to inquire about specific costs. Potential hidden costs may include project evaluation fees, subject to careful review of contract terms.
Digital Service
ExperienceAltum offers an online application system that allows users to submit applications for loans or guarantees through its website. According to WEgate, the website provides detailed information about services and the application process, and is available in both Latvian and English. Altum was not found to offer a mobile app or traditional banking features such as real-time transfers, bill management, or investment tool integration. In terms of technological innovation, Altum does not publicly use AI customer service, robo-advisors, or open banking APIs, but its digital lending programs, such as digital loans, have shown that they support enterprise technology upgrades.
Customer Service Quality
Altum is >altum@altum.lv by phone (+371 6777 4010), email (and branches provide customer support, supporting Latvian and English, suitable for cross-border users. Clients have access to face-to-face services through 5 main branches and 16 counselling centres. Data on complaint handling rates, average resolution times, or user satisfaction are not disclosed, but Altum, as a state-owned institution, promises to provide efficient services. Social media response speed information is limited, and users are advised to contact the official website for support.
Safety and Security MeasuresSafety
of
FundsAltum does not offer traditional deposit services and therefore does not participate in the standard deposit insurance program. Its loans and guarantee business are supported by the government, and the security of funds is backed by the state. Altum employs standard anti-fraud techniques, such as transaction monitoring, to protect client funds.
Featured Services & DifferentiationAltum's
featured services focus on financial inclusion and sustainability, targeting specific market segments:
student accounts: tuition and living expenses loans are available, and some traditional bank fees are waived, You need to apply through a partner bank.
Green financial products: Altum is the first institution in Central and Eastern Europe to issue green bonds to support energy efficiency and renewable energy projects, such as green bonds.
SME support: Invest in start-ups such as eAgronom agritech through venture capital funds.
Rural enterprises: provide land purchase loans and credit guarantees to promote agricultural development.
High-net-worth services (e.g. private banking) are not applicable as Altum focuses on policy-based financial support rather than wealth management.
Market Position & AccoladesAltum
occupies a central position in the field of development finance in Latvia and is the main institution supporting small and medium-sized enterprises, rural enterprises and individual housing. According to NEFI, its financial instruments cover all stages of business development, from start-ups to large-scale projects. In 2017, Moody's assigned Altum Baa1 investment grade ratings, one of the highest among Latvian state-owned enterprises. Altum is the first institution in Central and Eastern Europe to issue green bonds, strengthening its reputation in the field of sustainable finance.
SummaryAltum
is a state-owned development finance institution dedicated to the economic development of Latvia, supporting small and medium-sized enterprises, rural enterprises, and specific groups of individuals through loans, guarantees, and venture capital investments. Its financial soundness, green finance innovation, and extensive service network make it unique in the Latvian financial system. Despite the limited details of digital services and customer support, Altum's mission and policy support make it a key force for economic growth and sustainable development.
