State support for mitigating the crisis caused by Covid-19 has exceeded one billion euros, LETA was informed by the Ministry of Finance (MoF).
The total additional funding for the deployment of Covid-19 in 2020 is € 1.04 billion.
The most important source of funding for reducing the consequences of the disease is the budget program “Contingency Funds”, which has a total of 625 million euros available this year. By August, the government had allocated € 546.4 million from the contingency fund.
The reserve on the Treasury accounts on August 11 was 2.86 billion euros. General government debt was around 45% of gross domestic product (GDP) at the end of July this year, and the MoF forecasts that government debt will be around 49% of GDP by the end of 2020.
The Ministry of Finance also pointed out additional borrowing opportunities from international financial institutions in the total amount of 1.243 billion euros, including an agreement with the Nordic Investment Bank on planned borrowing in 2020 – 500 million euros, and an agreement with the European Investment Bank for 400 million euros.
Also, the information of the Ministry of Finance shows that as of 11 August, 434 loans for the total amount of 81 million euros were issued in the Altum support programs, 30.3 million euros for guarantees for the total amount of 85 million euros.
As of 10 August, an extension of the tax payment deadline was granted to 14,192 taxpayers in the amount of 246.22 million euros.
It has already been reported that an emergency situation had been declared in connection with the restriction of the spread of Covid-19 in Latvia until June 9. According to the Minister of Finance Jānis Reirs (JV), the possible state support for the Covid-19 crisis has reached four billion euros.
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