EU – Baltic States, Good for Business, Investments, Latvia, Loan, Markets and Companies

She said that the new loan guarantees for businesses that are not older than five years will provide the opportunity to receive Altum loans without collateral. The loans guaranteed under the new program will be available during the next three years. The maximum size of a loan to one enterprise is EUR 150,000.

“Thanks to the agreement concluded between Altum and the EIF, Latvian enterprises will be able to receive loans without collateral requirements, an opportunity which is very widespread in Latvia. The new program will focus on new, viable businesses with growth potential that are in the process of developing new products or services and lack collateral guarantees for access to an Altum loan. We are also working to also offer unguaranteed microloans, which will be available to an even higher number of entrepreneurs. The Cosme program agreement is yet another way for Latvian entrepreneurs to access financing under the so-called Juncker’s plan,” said Altum CEO Reinis Berzins.

Inna Steinbuka, the head of the European Commission’s Representation in Latvia, noted that the EIF-Altum agreement on the Cosmo loan guarantee facility for small and medium-sized businesses is proof that European Commission President Jean-Clade Juncker’s plan is working in Latvia, providing real benefits to entrepreneurs and helping create new jobs. In Steinbuka’s words, the total amount of investments Latvia will raise under this and other projects of Juncker’s plan is going to exceed EUR 500 million.

Cosme is the EU program for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs) running from 2014 to 2020 with a total budget of EUR 2.3 billion. At least 60 percent of the program will be devoted to easing access to finance for SMEs in Europe.

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.

Altum is a state-owned development finance institution, which offers state aid for various target groups with the help of financial tools (such as loans, credit guarantees, investing in venture capital funds, etc.). Altum develops and implements state aid programs to compensate for the market's shortcomings that can't be solved by private financial institutions. Altum shareholders are ministries of Economics, Finance, and Agriculture.