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Access to finance

18 November 2009
by Ina Dimireva -- last modified 26 June 2012

During economic growth in Latvia the most popular method of financing was bank loans. After Latvia joined the European Union businesses actively applied for EU funding. The Ministry of Economics is in charge of defining and coordinating government assistance policy for businesses.


Legal requirements

State aid

Business support applies to the allocation of resources and state/local authority determined obligatory payment relief. This can take various forms or ways - not only subsidies or reduced interest rates but also credit guarantees, accelerated depreciation and capital investment.

Business support policy

Legislation governing support

Indirect aid

You can obtain support from the Latvian Guarantee Agency (LGA), which provides guarantees for loans and financial and industrial leasing.

The Latvian Guarantee Agency

One of the services the agency provides is ensuring that a trader receives credit for carrying on his business in situations where collateral available to the business is not sufficient to obtain the necessary credit. This procedure is governed by the Regulations of the Cabinet of Ministers On Guarantees for Improvement of Competitiveness of Businesses.

Regulations of the Cabinet of Ministers

The LGA provides guarantees for the following financial services:

  • investment loans;
  • working capital loans;
  • financial leasing;
  • local factoring.

Guarantees are not granted for existing liabilities except in cases where the guarantee is necessary for obtaining investment loans or financial leasing, provided that the repayment of the base amount is deferred for at least one year but for no more than two.

The guarantees cover up to 80% for the financial service but no more than EUR 3,000,000 per company.

Direct aid

EUREKA supports the research, development and implementation of innovative technologies, mainly in SMEs. To qualify for public funding, you have to go through a public competition.


Information on support for staff training:

The State Employment Agency

Government assistance programmes for businesses:

programmes for 2007-2013

Action programmes

Supplements to action programmes 

Access to EU funding

Following accession to the EU, businesses began actively to apply for EU funding.

Latvia makes wide use of EU structural funds. The National Development Plan 2007 - 2013 defines which areas in the economy are in need of development and thus are to receive support.

Latvia’s sustainable development strategy

The Ministry of Economics

Information on EU structural funds, financial assistance programmes and projects in Latvia can be found here:

EU funds portal

Private finance

The ALTUM Promotional Programme. ALTUM mostly provides high-risk loans to viable projects and projects with a future for which the businesses cannot obtain funding from commercial banks due to insufficient security and other risks associated with the project.

The ALTUM Promotional Programme

At present, ALTUM implements the following lending programmes independently or in cooperation with other divisions:

Competitiveness programmes

Micro Lending Programme

SME Growth Loan Programme

Support for business start-ups

Documents required to receive support

Business support organisations can advise businesses on how to find financing.

Business support — Latvia

Source: Your Europe

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