Latvian municipalities to get additional 150 million euro boost

The investment plan for local governments will be increased by an additional EUR 150 million, a task force set up to support businesses and employees, led by Finance Minister Janis Reirs (New Unity), agreed on Monday, the LETA newswire reported.

The Finance Ministry told LETA that, considering the importance of the planned investments and new economic circumstances in the regions and the country as a whole, European Union funding to the amount of EUR 150 million will be redistributed to municipal support projects.

"During the recession, the EU funds must be invested in the most effective projects. Support will be provided for projects that are important for the economy and have a high degree of preparedness," the Finance Ministry pointed out.

Additional funding will also come from a loan received from the Nordic Investment Bank. Local governments will be able to receive loans for the implementation of their projects from the Treasury, on favorable terms. Both eligible and ineligible costs of the projects will be financed.

The Finance Ministry added that the task force would continue to analyze information provided by all ministries on the progress with implementation of EU funds and discuss proposals for redistribution of the EU funds.

The task force's final decision on redistribution of EU funds will be submitted for consideration to the Steering Group for Operational Elimination of Economic Effects Caused by COVID-19 under the Finance Ministry, and presented to the Cabinet of Ministers for consideration in early May.

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