Others(Other environmental measures)

On July 14 the Government of the Republic of Latvia at its meeting approved the Regulation on capital investments in enterprises whose operations have been affected by the spread of Covid-19, setting out the rules for the establishment of alternative investment funds for the support of large enterprises affected by the Covid-19 crisis.
The fund is being created with the aim to support well-managed, perspective enterprises that have run into temporary difficulties as a result of the Covid-19 crisis, as well as large enterprises that as a result of the virus impact, are ready to adjust their operations by changing their business model, adjusting product development, introducing new technology and expanding to new export markets. The fund will be managed by AS Development Finance Institution Altum.
The fund’s total size will be EUR 100 million, consisting in equal parts of public and private financing – EUR 50 million worth of public funds and EUR 50 million raised from the companies managing state-funded pension schemes. The share of public funding will not exceed 50% of the fund’s total capital. The alternative investment fund will be making investments of up to EUR 10 million in companies’ capital, quasi-capital and corporate bonds. The plan is to provide support to 20 to 30 large enterprises through the fund.
AS Development Finance Institution Altum will decide on investment based on the business plan developed by the enterprises, which also have to include an action plans to address the impact of Covid-19 infection on the enterprises business, information, how the received investment supports the activities of the enterprise in accordance with the objectives of the European Union and Latvia’s obligations related to green and digital transformation, including the objective of the European Union to achieve climate neutrality by 2050.
The fund’s investments will target economically viable and well-managed enterprises, companies operating in high value added industries, employing a large number of people and making significant social security contributions and personal income tax payments into the government budget, enterprises that are involved in innovation and/or manufacture of innovative products, and enterprises of systemic importance to their respective industries, etc.

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