At the same time, we can expect a reduction in business and household financial risk as the economy recovers, thus increasing the valuation of their existing assets and their collateral value, due to higher net returns on capital and real estate. As a result, households and businesses will gradually become more creditworthy, and more likely to obtain bank credit to finance their investments.
Mr Repse describes general economic developments and banking in Latvia  Notes delivered by Mr Einars Repse, Governor Bank of Latvia, at the 5th Annual International Conference and Exhibition “Banking and Finance in the Baltics 99”, held in Riga on 13-15 October 1999.