Economics Ministry calls for tourism and exporting support

Economics Minister Jānis Vitenbergs (KPV LV) Economic Development Group presented a proposal on support mechanism for tourism and exporting companies in COVID-19 to mitigate negative consequences, it was reported on June 4.

Companies with exports above EUR 1 million and average salaries above EUR 800 will have the possibility to receive State aid: part of each employee's salary above EUR 800. But for tourism companies affected by the crisis, support will be provided at a rate of 30% of the gross salary of employees. 

The planned funding of the aid program is EUR 70 million, including 50 million for exporting companies and 20 million for tourism operators.

The amount of aid for each company will be calculated on the basis of fall in the number of employees and turnover of the company in relation to 2019. 

During the period of receipt of the aid, the company will have to keep the number of jobs concerned.

More detailed conditions for receiving aid will be included in Cabinet regulations which are currently being developed. It is planned that the support will be administered by the State Revenue Service (VID).

"Most restrictions are gradually being lifted or reduced, economic activity is increasing, but many companies still do not have the possibility to resume full activity, resulting in difficulties holding employees. Companies have cash flow and supply chain disruptions, deferred settlements and lack of current funds. Therefore, the Ministry of Economics calls for the introduction of aid program for tourism and exporting businesses ," said Economics Minister Jānis Vitenbergs.

 

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