EU Commission approves EUR 181.5 million Latvian business support schemes in context of Russia's invasion of Ukraine

• Published date: 01 August 2022
• Publication title: LETA

RIGA, Aug 1 (LETA) - The European Commission has approved two Latvian schemes with a total budget of EUR 181.5 million to support small and medium-sized enterprises (SMEs) and large companies across sectors in the context of Russia's invasion of Ukraine, LETA was told at the press office of the European Commission's Representation in Latvia.

The schemes were approved under the State aid Temporary Crisis Framework, adopted by the Commission on March 23, 2022, based on provisions of the Treaty on the Functioning of the European Union (TFEU), recognizing that the EU economy is experiencing a serious disturbance.

Latvia notified to the Commission under the Temporary Crisis Framework two schemes with a total budget of EUR 181.5 million to support SMEs and large companies across sectors in the context of Russia's invasion of Ukraine.

Under these measures, which will be administered by the State-owned Joint Stock Company and Latvian public development bank Altum, the aid will take the form of guarantees on new loans and leases; and subsidized loans.

In light of the high degree of economic uncertainty caused by the current geopolitical situation, the schemes are aimed at ensuring that sufficient liquidity remains available to the companies in need.

The measures will be open to companies across sectors with the exception of credit and financial institutions.

s regards the guarantees, they will cover up to 90 percent of the loan or lease principal. Losses will be sustained proportionally by the credit institutions and the State. The estimated budget for this measure is EUR 22.5 million.

When it comes to subsidized loans, they will be granted directly by Altum. The budget for this measure is EUR 159 million.

Both the maximum loan or lease amount covered by a public guarantee and the maximum subsidized loan per beneficiary will be equal to either 15 percent of its average total annual...