EC approves €160 million Latvian guarantee program for exports

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The European Commission (EC) agreed to a €160 million Latvian guarantee program for COVID-19 crisis-stricken exporting companies, the EC agency in Latvia told news agency LETA on July 8.

This was approved under the temporary framework for State aid measures.

The aid takes the form of State guarantees for loans and will be available to medium and large enterprises for which exports represent more than 30% of annual turnover.

The program aims to limit the risks associated with lending to export companies experiencing the economic impact of the outbreak of COVID-19, thereby helping them to continue operating and to make the investments needed to maintain their competitiveness after the outbreak.

The EC found that the Latvian program complies with the conditions for temporary regulation of the European Union (EU).

The Commission concluded that the measure was necessary, appropriate and proportionate in order to avoid serious disturbances in the Latvian economy under the conditions of the Treaty on the Functioning of the EU and the EU's temporary regulation. On this basis, the EC confirmed the compatibility of the measure with EU State aid rules.

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