Analytics, Direct Speech, Economics, EU – Baltic States, Financial Services, Latvia, Markets and Companies

Mārtiņš Ramiņš.

According to him, with the reducing inland demand for printed products the polygraphy companies are already working with great success for foreign markets and entry of Latvia into the eurozone will ensure even broader opportunities for export.

Ramiņš reminds that Reneprint Poligrāfija concluded year 2012 with the turnover in the extent of LVL 13 million, representing a 32% climb comparing to the previous year; this year the company is planning to increase the turnover until LVL 16 million. 

Ramiņš says “Our plans include increasing the turnover by at least 10% during the first year of entering the eurozone on the account of export.”

He referred to Estonia where, according to the data of Eurostat, European Union (EU) statistical authority, export growth reached 38% during the first year of accession to the eurozone and was the second sharpest amongst the block countries.

Ramiņš drew attention to the fact that in 2011 when Estonia acceded to the eurozone, the export volumes of this particular Baltic state reached EUR 12 billion (LVL 8.4 billion), constituting the highest rate since the country acceded to EU in 2004.

“Accession to the eurozone will be beneficial also to Latvia due to its orientation towards export. Now the companies gaining a significant share of income abroad have to consider the costs of currency exchange, because the salaries are paid to employees in lats. Money is spent also to pay banks for the currency exchange procedure itself. Introduction of euro will solve all of the above!" Ramiņš explains.

He also indicates how important it is that the Latvian companies working in polygraphy and in other fields will have much broader advantages when purchasing raw materials after country’s accession to the Economic and Monetary Union of the European Union.

“After introduction of euro we will be able to receive the necessary raw materials from abroad for lower prices due to the participation of Latvia in the eurozone, which will mean that Latvia is a more stable and safer partner worthy of better conditions for delivering raw materials," Ramiņš emphasizes.

In addition, according to his forecast, when Latvia will enter the eurozone, most credibly the international rating agencies will increase the national credit rating.

“This will benefit also the companies, which will receive cheaper loans for their development. Spending for attraction of resources for development will reduce." the representative of Reneprint Poligrāfija says.

Stable growth of national economy and cheaper available credit resources for companies will ensure more money remaining for raising salaries. Ramiņš expects that, as a result, introduction of euro will benefit also the employees of companies whose remunerations, most possibly, will grow.

Accession to a large group of countries, i.e., the eurozone, will benefit all fields of Latvian national economy. The representative of Reneprint Poligrāfija says that eurozone is not experiencing its best time, however, it is still showing its readiness to do everything it can to solve its both current and future problems.

“Introduction of euro will grant more stability and allow stable development of national economy. It is of particular importance to any company while planning its future.” he summed up.

Reneprint Poligrāfija is the most rapidly growing polygraphy company in Latvia and one of the largest companies in the field in the Baltic States. Reneprint Poligrāfija provides large-sized rotation printing and extensive post-processing services for over a decade. The company employs more than 100 professionals in polygraphy.

Reneprint Poligrāfija concluded year 2012 with the turnover of LVL 13 million, which exceeded the previous year’s figure by 32%. This year the company is planning to raise the turnover until LVL 16 million.

European Commission and European Central Bank are currently assessing the conformity of Latvia to Maastricht criteria which determine the qualification for accessing the eurozone. Both institutions will present their report on June 5, which will serve as a recommendation for the Member States of the European Union who will say their final word at the European Council meeting of June in Brussels. Latvia is planning its entry to the eurozone to take place on 1 January 2014. Now all signs show that the plan will be fulfilled and Latvia will become the 18^th member of the eurozone next year.