Published: 05.09.2023.
atbalsts

The information was translated using the ChatGPT service.

By allocating additional EU fund financing and specifying certain regulatory norms, the Cabinet of Ministers, in its session on 5 September this year, decided to extend two existing Altum support programs for entrepreneurs until the end of 2029 (or until all available funding within the program framework is reserved):

  1. Portfolio guarantees for the promotion of lending to small (micro), small, and medium-sized commercial operators – legal entities;
  2. Guarantees for commercial operators to improve competitiveness.

"The need to increase productivity volumes, make investments in new product development, promote the creation of new, well-paid jobs, and expand the geographical scope of export markets is crucial both for ensuring competitiveness and for economic growth. To ensure that the development projects initiated or planned by entrepreneurs are not delayed, we have found a solution to continue the guarantee and portfolio guarantee programs without interruption during the transition period of EU funds. At the same time, we have also expanded the potential circle of support recipients, ensuring that these financial instruments are accessible to a wider circle of merchants,” emphasizes the Minister of Economics, Ilze Indriksone.

A reminder: a guarantee serves as additional collateral for a company's obligations in a bank. Credit guarantees are issued to companies that lack sufficient collateral to obtain a loan or to obtain the required loan amount but have transparent financial history and positive creditworthiness.

The support program for portfolio guarantees for promoting lending to small (micro), small, and medium-sized commercial operators – legal entities, has been allocated an additional fund of 9,869,476 euros (including EU fund financing for the 2021-2027 planning period of 8,389,055 euros and state budget financing of 1,480,421 euros).

Meanwhile, an additional fund of 29,608,427 euros (including EU fund financing for the 2021-2027 planning period of 25,167,162 euros and state budget financing of 4,441,265 euros) has been allocated to the support program for guarantees for commercial operators to improve competitiveness.

In both support programs:

  • The previous circle of support recipients has been expanded to include small-cap and mid-cap companies;
  • The list of unsupported sectors has been updated, including land purchase when the amount exceeds 10% of the total costs attributable to the respective activity, or with respect to abandoned and former industrial areas where there are buildings, this limit is increased to 15% of the guaranteed financial service amount;
  • Supported activities have been updated to also provide support in the form of guarantees for digitalization and automation.

It is planned that by December 31, 2029, a total of 310 companies will be supported within the framework of the guarantee program, attracting private investments of approximately 130 million euros, while a total of 235 companies will be supported within the framework of the portfolio guarantee program, attracting private investments of approximately 110 million euros.

So far, Altum has supported a total of 832 merchants with a total guarantee amount of 199,092,392.05 EUR. In terms of transactions, 30% are in the processing industry, 29% of the guarantee portfolio consists of transactions in the trade sector, and 27% in the construction sector.

Detailed information about the regulations approved by the government today can be found on the Legal Acts portal: