Energy, Financial Services, Latvia, Legislation, Loan, Port, Transport

If another extraordinary parliament meeting is convened today, possibly the bill might be adopted in the final reading.

The government loan will be issued on a number of pledges - four real estate properties and Ventspils dry cargo terminal, said Transport Minister Talis Linkaits (New Conservative Party) said at the meeting of the responsible parliament committee.

The government in June supported amendments to the law on the Ventspils Freeport, allowing the finance minister to issue loans in the name of the government to the freeport administration for refinancing of bank loans issued for construction and for financing the started construction projects.

The freeport administration informed that the port needs government loan for implementation of the EU co-funded port infrastructure development projects for a number of reasons - the world's economic situation, drop in transit cargos, as well as processes initiated by sanctions of U.S. Treasury Department's Office of Foreign Assets Control (OFAC).

The port said that the loan is needed  as in June 2020 the port has to repay four loans worth EUR 8.3 million. In line with the agreements, there should be a possibility to extend the term of repayment, but due to the circumstances mentioned above, the banks refused to extend the loan, and other banks refused refinancing possibilities.

Also, the port has faced a significant drop of cargos due to Covid-19 global economic crisis.