With reference to the statement by Euler Hermes Kreditversicherungs-AG Latvian branch (Euler Hermes), on 7 July, concerning the full or partial cancellation of credit limits for customers of ELKO Grupa JSC in Latvia and Lithuania, and with regard to the information related to this decision published in several media outlets we wish to issue the following statement:

·         The decision of Euler Hermes will have no essential effect on the operational results of ELKO Grupa JSC, because the proportion of customer sales in Latvia and Lithuania is approximately 5-6%of the total sales volume; 

·         Customer relationships established over more than 15 years are greatly appreciated by ELKO Grupa JSC. Therefore, despite the sudden decision by the insurer the management credit risk model will be customized by ELKO Grupa JSC within the limitations of the considerable risk noticeably affected by the decision of EULER Hermes.