The information was translated using the ChatGPT service.
At its meeting on September 5th this year, the Cabinet of Ministers supported the proposal of the Ministry of Economics to allocate 506,397,484 euros of EU funds for the 2021-2027 financial period for the support of businesses through Altum's financial instruments.
“With these financial instruments, we will reduce market imperfections and promote the establishment and growth of new entrepreneurs, ensuring access to financing for the implementation of promising and viable business projects for those entrepreneurs who, due to insufficient collateral, business history, credit history, net income flows or existing credit commitments, have been unable to attract the necessary financing from financial market participants," emphasizes Minister of Economics, Ilze Indriksone.
Upon approving the Cabinet regulations “Common implementation provisions of the European Union Cohesion Policy Program's financial instruments for 2021-2027”, the government decided that this support in the form of Altum's financial instruments will be provided in 10 support programs:
• Productivity loans (including with capital discount) for innovative equipment, research and development, technology transfer,
• Individual guarantees for digitization and automation,
• Venture capital investments,
• Start-up and growth loans,
• Guarantees, portfolio guarantees for full-cycle entrepreneurship,
• Loans for increasing productivity (investments and working capital),
• Improving energy efficiency in residential buildings, including developing the ESCO market (multi-apartment, private and small-apartment complexes),
• Use of RES and improving energy efficiency in industry and for businesses,
• Promoting renewable energy sources - solar energy and other RES electricity,
• "Greening" of business and product development initiatives, promoting increased energy efficiency and the introduction of energy-efficient technologies in companies.
It is planned that under these support programs, by December 31, 2029, a total of more than 2500 companies will be supported, attracting more than 399 million euros in private co-financing, improving energy efficiency for 13,450 homes, saving 3,480 estimated greenhouse gas emissions, producing 16,696 MWh/year of renewable energy, and introducing an additional electricity production capacity of 9.58 MW from renewable energy sources.
In the previous EU funds period of 2014-2020, Altum provided support to businesses in 7 financial instrument programs (guarantees, parallel and start-up loans, SME loans, microloans, venture capital, and acceleration program). Within this framework, by the 2nd quarter of 2023, 1503 companies received support totaling 350.65 million EUR: o 56 million EUR in development loans, supporting 120 companies, o 11 million EUR in start-up loans, supporting 666 companies, including 455 newly established companies, o 238.45 million EUR for guarantees, supporting 582 companies, o 45.2 million EUR in venture capital investments and acceleration, supporting 135 companies, including 109 newly established companies.
Detailed information about the Cabinet regulations “Common implementation provisions of the European Union Cohesion Policy Program's financial instruments for 2021-2027” can be found on the Legal Act Portal.