Covid-19, EU – Baltic States, Financial Services, Good for Business, Latvia

International Internet Magazine. Baltic States news & analytics Saturday, 17.04.2021, 05:52

EC approved EUR 70.8 mln program for Latvia to support companies affected by the Covid-19 outbreak

BC, Riga , 17.12.2020.Print version
The European Commission has approved EUR 70.8 million program for Latvia to support companies affected by the Covid-19 outbreak, LETA learned from the European Commission's representative in Latvia, Kristine Liepina.

The scheme was approved under the State aid Temporary Framework. The support will take the form of direct grants amounting to 30 percent of the beneficiary’s gross wages and salaries over the months of August, September and October 2020. 


Liepina said that the scheme will be open to companies active in all sectors, excluding primary producers of agricultural products, public companies and financial institutions. To be eligible, companies must have suffered a decrease in turnover of at least 20% in November 2020 or December 2020, compared to the average turnover of the months of August, September and October 2020; as well as a decrease in turnover of at least 30% compared to the turnover of November or December 2019 respectively. 


The aim of the measure is to help beneficiaries counter the decrease in working capital in the context of the second wave of the coronavirus. The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Framework. In particular: the aid will not exceed the EUR 120,000 for companies active in the fisheries and aquaculture sector and EUR 800,000 for companies active in all other sectors; and the aid will be granted before June 30, 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State.






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