Mortgage and Land bank of Latvia
The Government of the Republic of Latvia founded the state-owned JSC Mortgage and Land Bank of Latvia (Mortgage Bank — Hipotēku banka) on 19 March 1993 by the Cabinet order No. 140. The Mortgage Bank was the only 100 % state-owned commercial bank.
The aims of the state-owned JSC
Mortgage and Land Bank of Latvia and its legal status are somewhat similar to those of the two state-owned banks functioning in the Republic of Latvia before the World War II: Valsts Zemes banka (State Land Bank) and Latvijas Hipotēku banka (Mortgage Bank of Latvia). The major tasks of these two banks were to finance the agrarian reform and grant long-term mortgage loans, mainly for financing of construction works. Due to its business niche and contribution to Latvia’s national economy, the Mortgage Bank is to be considered the heir and successor of those two Latvian state-owned banks operating before the World War II. The name that was chosen for the Bank - Latvijas Hipotēku un zemes banka (Mortgage and Land Bank of Latvia), contains the names of both aforementioned banks, thus manifesting the founders’ intentions to continue their traditions.
The Bank actively engaged in the development of the mortgage lending system of Latvia, establishment and development of the market in mortgage-backed securities, as well as promotion of mortgage-backed securities.
On 9 December 2013, the shareholder of Hipotēku banka decided to surrender the bank's credit institution licence, starting from 1 January 2014; the Financial and Capital Market Commission approved this on 19 December 2013. Thus, since 1 January 2014, Hipotēku banka continue its operations as the State Joint-Stock Company Latvijas Attīstības finanšu institūcija Altum (Latvian Development Financial Institution Altum).
ALTUM currently has 9 branches and 16 Development Programme Consulting Centres in different regions of Latvia that provide customer services throughout the territory of Latvia.
ALTUM is a Latvian development financial institution with a special goal to develop the Latvian economy and create added value. The main and only function of ALTUM is to provide state aid.
The mission of ALTUM is: in cooperation with its clients, to help them realise their ideas and dreams, and to increase the well-being of its clients and employees by collectively contributing to the Latvian economy.
ALTUM's development strategy and operations are based on the following basic values: cooperation, support and growth.