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EC coordinates 160 million euro Latvian guarantee program for exporting companies / Article / LSM.lv

The European Commission (EC) has coordinated the 160 million euro Latvian guarantee program Covid-19 for exporting companies affected by the crisis, LETA was informed by the EC Representation in Latvia.

This aid measure 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-sized and large companies, which account for more than 30% of annual turnover.

The program aims to limit the risk associated with lending to export companies that are experiencing the economic impact of the Covid-19 outbreak, thus helping them to stay afloat and make the investments needed to remain competitive after the outbreak.

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

“First, it is limited in time. Second, it sets an adequate level of guarantee remuneration. Third, the amount of aided loans does not exceed what is necessary to cover the liquidity needs of the beneficiaries caused by the Covid-19 outbreak. Fifth, it includes appropriate security measures that ensure that banks effectively channel this support to the beneficiaries who need it, “explained the EC Representation in Latvia.

The Commission concluded that the measure was necessary, appropriate and proportionate to prevent a serious disturbance in the Latvian economy in accordance with the provisions of the Treaty on the Functioning of the EU and the EU temporary framework. On this basis, the EC confirmed that the measure complied with EU state aid rules.

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