Translated using ChatGPT service.
On 12 August, the Cabinet of Ministers approved amendments proposed by the Ministry of Economics to Regulation No. 383 “Regulations on Guarantees for Economic Operators to Improve Competitiveness”, which significantly increase the maximum guarantee amount from the current EUR 5 million to EUR 25 million, as well as specify the sources and amounts of financing for these guarantees.
“By substantially increasing the guarantee amount and broadening the range of beneficiaries, we are giving entrepreneurs the capacity to implement more ambitious projects, introduce modern technologies, and move more quickly from ideas to actual production or service delivery. This is a signal that the state is a partner for entrepreneurs in growth,” emphasized Minister of Economics Viktors Valainis.
The new guarantee threshold will allow entrepreneurs to implement considerably larger investment projects, attract financing for the introduction of new technologies, expand production capacity, and strengthen competitiveness. The higher level of support will stimulate lending and help move from planning to the implementation of real projects, thereby accelerating economic growth.
The amendments also foresee an expansion of the circle of support recipients – in the future, support will be available not only to credit institutions and their subsidiaries registered in Latvia but also to credit institutions and subsidiaries from other EU and EEA countries, as well as alternative financing providers, including financial technology companies.
The approved amendments significantly increase the available guarantee amount to EUR 25 million, expand the circle of beneficiaries to include foreign financial institutions and alternative financing providers, allow for the application of more flexible state aid regulations, and further provide that guarantees may be granted for the implementation of military projects. When applying for support for military projects, an opinion from the Ministry of Defence will be required to confirm the project’s compliance with security interests related to the production of weapons, ammunition, and military equipment.
By July 2025, Altum guarantee programs had supported 390 companies (265 guarantees and 125 portfolio guarantees). Private investments complementing public support amounted to EUR 144 million (EUR 136 million in guarantees and EUR 8 million in portfolio guarantees).