Translated using ChatGPT service.
To support continued investment and development projects by entrepreneurs in the face of high interest rates, the Cabinet of Ministers, on October 1, 2023, approved a new support program proposed by ALTUM and the Ministry of Economics. This program will grant subsidies for interest payments made in 2024 to approximately 4,000 entrepreneurs with existing loans in ALTUM’s loan portfolio.
“In a time when bank lending volumes across all sectors are unsatisfactory, it is important to support entrepreneurs so that the funds saved on interest can be directed toward business development and working capital,” said Minister of Economics Viktors Valainis.
The implementation of this program does not require new public funding. Reinis Bērziņš, Chairman of the Board at ALTUM, stated: “We appreciate the shareholders' support for this initiative, which will use €3.95 million from ALTUM's 2023 revenue to compensate for interest payments. The maximum subsidy will not exceed 25% of the interest payments made in 2024.”
Only borrowers who meet the program’s criteria will be eligible to receive the subsidy for 2024 interest payments. This includes having no payment delays exceeding 30 days with ALTUM as of December 31, 2023. The subsidy will not cover interest payments made before December 31, 2023, late interest payments, penalties, or any other fees related to loan agreement violations, nor will it cover commission fees.
The calculated support will be granted as a de minimis aid subsidy, credited to the borrower’s account for future payments. ALTUM clients eligible for the subsidy will be notified individually.
As noted, in response to the lending downturn caused by rising interest rates in 2023, ALTUM introduced several relief measures for new transactions, both in guarantee programs and direct loans, to help businesses continue their investment plans despite the high credit interest environment.