VIII. TRADE AND PROJECT FINANCING

With the exception of the state savings bank (Krajbanka) system,
Latvia's commercial banking system is completely private.  Since
the first private commercial banks were established in the late
1980s, banking has grown exponentially as Latvian banks served as
a financial window on the world for customers across the former
Soviet Union.  On July 1, 1994, assets of Latvian commercial
banks totaled 812.4 million lats ($1.5 billion).  At present,
bank services are limited to short-term lending, international
financial transfers, foreign-currency exchange transactions, and
credit and debit card operations.

The Latvian government maintains no controls over the import,
export, use or exchange of foreign currencies in Latvia.

Medium-term Eximbank financing is available in Latvia for credits
that are backed by the full faith and credit of the Latvian
government.  EBRD financing is also available for both private-
and public-sector projects.   The Latvian banking association
reports that the following 26 Latvian banks currently have
correspondent arrangements with U.S. Banks:  Rigas Komercbanka,
Latvijas Universala Banka, Zemes Banka, Baltijas Transitu Banka,
Baltija Banka, Depozitu Banka, Latvijas-Vacijas Banka, Rietumu
Banka, Centra Banka, Latvijas Kapitala Banka, Latvijas Krajbanka,
Kredo-Banka, Latekobanka, Latintrade Banka, Multibanka, Rigas
Naftas un Kimijas Banka, Olimpija Banka, Ogres Banka, Sakaru
Banka, Skonto Banka, Rigas Starptautiska Banka, Latvijas Tautas
Banka, Union Baltic Bank, Saules Banka, and the "Land" Banka.