Cabinet approves EU support for SMEs in Latvia

The Cabinet of Ministers approved a new European Union support fund program to help small and medium sized enterprises (SMEs) access capital markets, which will be the first such program in the Baltics and will be implemented by the Central Finance and Contracting Agency (CFLA) once every quarter, according to the Ministry of Economics on January 21.

The support program will be implemented as a pilot project for this EU planning period. The plan includes one million euros, including 0.8 million euros for share issues and 0.2 million euros for debt securities. The support will cover 50% of costs in the form of a grant.

"We hope that this new support program will encourage merchants to increasingly evaluate the opportunity to gain financing through the stock market, which ensures further development and faster growth for the company,” said Economics Minister Ralfs Nemiro (“KPV LV”).

The plan aims to support 20 SMEs over the next three years. Support will be granted to help enterprises with the various costs related to entering capital markets, such as:

  • raising capital
  • preparing emission prospectus
  • preparing offering documentation or merchant description
  • in-depth research
  • hiring a certified consultant
  • legal, financial, tax, auditor, certified consultant consultations

Program participants will have to secure successful entry into the Nasdaq Riga regulated secondary securities market or the First North alternative stock exchange no later than two years after signing the cooperation contract. A successful entry will be considered an initial public offering of at least 500 000 euros in any Nasdaq Riga regulated capital market listing.

Further information about the program is available on the Cabinet of Ministers' website, although currently only in Latvian.
 

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