LHV will help pharmacists set up pharmacies by granting them loans

9. January 2020

Loan opportunities for pharmacists were discussed at a meeting between LHV Pank and the Estonian Chamber of Pharmacists, and LHV confirmed its willingness to make financing more accessible to pharmacists for establishing new pharmacies and buying out chain pharmacies.

“We have decided to make financing more accessible to pharmacists – even though the pharmacies to be established by pharmacists will be new as companies, pharmacies have been operating in these locations for quite some time; therefore, the risk of starting a pharmacy is quite low,” explained LHV Pank’s Head of Business Banking Indrek Nuume after meeting with the Estonian Chamber of Pharmacists. “In guaranteeing investment loans, we cooperate with KredEx, and hopefully, we can count on their support with pharmacies as well, i.e. it will create excellent soil for financing new pharmacies,” Nuume added.

According to Chairwoman of the Board of the Estonian Chamber of Pharmacists, Karin Alamaa-Aas, pharmacists may require assistance during the pharmacy reform on two occasions. “Firstly, for establishing new pharmacist-owned pharmacies, especially in regions where currently only a chain pharmacy operates and its owners are not open to negotiate over the future of the pharmacy. Secondly, a pharmacist may require the bank’s assistance in buying out a pharmacy that is currently owned by a chain, should the current owner put it up for sale,” she said.

Alamaa-Aas said that Estonia’s transition to a system of pharmacist-owned pharmacies is a major challenge for all involved. “It is all the more delightful when a domestic bank is willing to help pharmacists in making the required investments,” said Alamaa-Aas.

On 1 April, after a five-year transition period, Estonia will transfer to a system of pharmacist-owned pharmacies, which separates the retail and wholesale of drugs, and the right to run a pharmacy will be left to pharmacists. At the same time, the accessibility of financing for buying out the pharmacies has been a cause of worry for pharmacists. LHV supports entrepreneurial people and companies who have the courage to invest in the future, which is why the bank encourages pharmacists to start their own business and to familiarise themselves with the financing opportunities that the bank offers.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 430 people. LHV’s banking services are used by nearly 202,000 clients, and pension funds managed by LHV have nearly 177,000 active clients.

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