Covid-19, Good for Business, Industry, Investments, Latvia, Markets and Companies

Today, the government also approved regulations for making capital investments in enterprises affected by the coronavirus crisis. 

The fund will be managed by Latvia's Development Finance Institution Altum.

The purpose of the fund will be to support large companies that are economically viable and well-managed, but are experiencing temporary difficulties due to the impact of the Covid-19 pandemic, and those companies that are ready to adapt or revise their current business model as a result of the impact of Covid-19.

Public financing of the fund will amount to EUR 50 million and it is projected that private funding will also amount to EUR 50 million. The fund will invest in companies' capital, make quasi-equity investments and also invest in corporate bonds, provided that they are listed on the Nasdaq Riga stock exchange.

According to the scheme, the support will be provided in the form of subsidized debt and recapitalization instruments. The government will invest EUR 50 million into the fund, while a commercially managed Latvian pension fund will provide EUR 50 million.

According to the Finance Ministry, the maximum amount of the fund's investments in one company will not exceed EUR 10 million, and the fund will invest in about thirty large companies in total.