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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 23:06

Latvian companies hit by Russia's sanctions to receive partial interest rate write-offs

BC, Riga, 19.08.2014.Print version
In order to provide support for food producers and farms that have been hit by Russia's export embargo, the government of Latvia will create a new finance tool by making changes to the partial interest rates repayment program, according to the "Regulations on the allocation of state and European Union funds to facilitate agricultural investing" introduced by the government, reports LETA/Nozare.lv.

The regulations stipulate changes to the partial interest rates repayment program, providing partial interest rates compensations of short-term loans for dairy, meat and fish processing companies, as well as farmers.

 

The partial interest rates repayment program also stipulates long-term and short-term loan compensations for the large dairy, meat and fish processing companies. This applies to companies that used to export products to Russia that are now added to the list of banned import products.

 

Companies can apply for the partial interest rates repayment program from October 1 to October 20.

 

The amount of support will not exceed the annual loan interest rate – 4% – or the actual rate if it is smaller than 4%. The amount of support funds, on the other hand, will be EUR 200,000, while for the fishing industry – EUR 30,000.

 

Agriculture Minister Janis Duklavs (Greens and Farmers' Union) said that "the Ministry of Agriculture has to act in a way in order not to hinder dairy, meat and fish processors' negotiations with the banking sector. Therefore, it was important to discuss this matter immediately," Duklavs said.






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