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The Ministry of Finance pointed out that the development of the local capital market and facilitating access to finance for small and medium-sized enterprises is a common priority of the Baltic States, which was previously included in the agreement signed on 6 November 2017. Estonian, Latvia and Lithuania Memorandum of Understanding between the Ministers of Finance on the development of the regional capital market in the Baltics.
To facilitate this, the Baltic States plan to set up an initial public offering fund for small and medium-sized enterprises in the amount of 80 million euros, while acknowledging that the minimum amount of the fund may be 40 million euros. The fund’s target audience would be profitable companies with a company value of between five million euros and 100 million euros.
It is planned that the fund would invest 500,000 euros to five million euros in one company, which would allow to make just over 20 investments.
The MoF added that initially only Latvia and Lithuania would participate in the fund, while Estonia would potentially join later.
Next week, Latvia’s participation in the fund will be decided Cabinet of Ministers. It is planned that the government will delegate “Development Financial Institution high“in co – operation with the Ministry of Economics and the Ministry of Finance, to represent Latvia in negotiations with the delegated representatives of Estonia and Lithuania on the conditions of operation of the Fund, including the management structure and regulations.
Latvia ‘s contribution to the fund – 20 million euros – will be attracted from European Union funds.
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