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Details of Latvia's support measures to help citizens and companies during the significant economic impact of the coronavirus pandemic.

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

  • on 22 December 2021, the Commission approved a €45 million aid measure for AirBaltic. The measure aims to compensate the airline for the damages suffered due to the coronavirus pandemic and the travel restrictions imposed to limit the spread of the virus.

  • on 15 December 2021, the Commission approved a €64 million scheme to support employers, self-employed individuals and patent fee payers affected by the coronavirus pandemic and the restrictive measures implemented to limit the spread of the virus. The assistance, in the form of wage subsidies, aims to provide income support for the beneficiaries, and help employers cover wage costs, allowing them to resume their activities and avoid lay-offs.

  • on 14 December 2021, the Commission confirmed that a €9 million rent compensation scheme to support companies affected by the coronavirus pandemic, previously approved in July 2020 and amended in January 2021, was in line with the state aid Temporary Framework. The support, in the form of direct grants, aims to reduce lessees' payments for publicly owned property, and release them from the imposition of late interest and contractual penalties in the case of late payments.

  • on 14 December 2021, the Commission approved  an amendment to an existing scheme to support companies affected by the coronavirus pandemic, whose turnover has declined due to the outbreak and the restrictive measures put in place to limit the spread of the virus. The support, in the form of direct grants, aims to help the beneficiaries continue their economic activity and help preserve jobs. 

  •  on 6 December 2021, the Commission approved a €21.9 million scheme to support companies and the self-employed affected by the coronavirus pandemic and the restrictive measures implemented to limit the spread of the virus. The assistance, in the form of interest-free deferrals of payment of taxes and social security contributions, aims to enhance the liquidity of the beneficiaries and help them continue their activities during and after the pandemic.

  • on 14 September 2021, the Commission approved a €1.8 million scheme to support farmers active in the cattle-breeding sector affected by the coronavirus outbreak. Under the scheme, the support, in the form of direct grants, aims to mitigate the liquidity shortages of the beneficiaries and help address part of the losses incurred due to the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus.

  • on 22 July 2021, the Commission approved a €650,000 scheme to support companies active in primary microgreen production, fishery and aquaculture sectors affected by the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to mitigate the liquidity shortages faced by the beneficiaries and address the losses incurred from 1 October 2020 to 31 May 2021.

  • on 21 June 2021, the Commission approved a €3.2 million scheme to support media companies affected by the coronavirus outbreak, and by the restrictive measures imposed to limit the spread of the virus. Under the state aid Temporary Framework, the scheme is open to 74 national, regional and local mass media companies producing editorially independent journalistic content. The support, in the form of direct grants, aims to mitigate the sudden liquidity shortages faced by the beneficiaries due to the significant decrease in demand for advertising in media outlets.

  • on 27 May 2021, the Commission approved a €9.35 million scheme to support primary producers of eggs, poultry and their products in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants and support for uncovered fixed costs, aims to help the beneficiaries continue their activities during and after the coronavirus outbreak.

  • on 25 May 2021, the Commission approved a €8 million measure to support companies that own, manage or rent sports centres in Latvia, in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants to sports centres, aims to cover the operational costs of the beneficiaries.

  • on 25 May 2021, the Commission approved a €20 million measure to support owners of shopping centres in Latvia, in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to cover costs related to the use of the buildings from 1 December 2020 to 31 December 2021.

  • on 12 May 2021, the Commission approved a €6 million scheme to support companies active in the arts, entertainment and recreation sectors in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the scheme is open to companies whose operations were affected by the government-imposed restrictive measures to limit the spread of the coronavirus. The support, in the form of direct grants and loans, aims to support companies' working capital and mitigate the negative impact of the coronavirus outbreak on their financial situation.

  • on 7 May 2021, the Commission approved a €13 million scheme to support pig farmers in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants and support for uncovered fixed costs, aims to help the beneficiaries continue their activities during and after the outbreak.

  • on 19 March 2021, the Commission approved a €3 million Latvian scheme to support micro and small-sized enterprises and small farmers active in the agricultural primary production sectors affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to ensure the viability of the beneficiaries and to maintain the stability of farm income during and after the outbreak. The measure is expected to benefit around 14,000 beneficiaries.

  • on 9 March 2021, the Commission approved a Latvian plan to grant up to €39.7 million for the recapitalisation of Riga International Airport. Under the state aid Temporary Framework, the measure aims to restore the financial position and liquidity of the Riga International Airport in the exceptional situation caused by the coronavirus pandemic, while maintaining the necessary safeguards to limit competition distortions.

  • on 19 January 2021, the Commission approved a €5 million Latvian scheme to support organisers of cultural events who had to cancel announced public cultural events due to the restrictive measures implemented by the Latvian government to limit the spread of the coronavirus. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to mitigate the sudden liquidity shortages that these companies are facing due to the coronavirus outbreak.

  • on 17 December 2020, the Commission approved a €70.8 million Latvian scheme to support companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, was earmarked for companies active in all sectors, excluding primary producers of agricultural products, public companies and financial institutions. The measure aimed to help beneficiaries counter the decrease in working capital in the context of the second wave of the coronavirus. The scheme was subsequently modified on 3 February and 2 March 2021, respectively. The amendments increased the budget to €310.8 million, introduced the possibility to grant aid up to €1.8 million per company active in other sectors than agriculture, fisheries and aquaculture, and introduced other technical modifications.

  • on 4 August 2020, the Commission approved a Latvian scheme with an estimated budget of €51 million, to support companies engaged in the export of goods and services in the context of the coronavirus outbreak. The financial support, which will take the form of direct grants, will cover up to 25% of the mandatory social security contributions paid by the beneficiaries. The scheme will benefit around 350 companies, and will be open to those with exporting activities active in all sectors. The purpose of the scheme is to address the liquidity needs of companies affected by the current crisis, and to help them to continue their activities, start investments and maintain employment during and after the outbreak.

  • on 31 July 2020, a €114,000 Latvian scheme to support cooperatives active in the forestry sector affected by the coronavirus outbreak. The public support will take the form of direct grants and will be open to cooperatives providing forest services. The purpose of the scheme is to help those undertakings to continue their activities during and after the coronavirus outbreak.

  • a €19 million Latvian scheme to support tourism and events operators, which had to limit, suspend or cease their activities due to the emergency measures adopted in order to limit the spread of the coronavirus. The measure was approved under the State aid Temporary Framework. The public support will take the form of direct grants and will amount to 30% of the mandatory state social security contributions paid by the beneficiary in 2019. Companies that have faced an income loss of at least 30% over one month during the period from April to June 2020, compared to the same month in 2019, will be eligible for aid under this scheme. In addition, the grants should be used for the remuneration of employees' work. The aim of the measure is to facilitate access to finance and to mitigate the sudden liquidity shortages that the affected companies are facing.

  • on 10 July 2020, a €58 million Latvian scheme to support companies leasing property from public bodies that saw their income substantially decrease due to the measures imposed by the Latvian government in the context of the coronavirus outbreak. The support, which will take the form of direct grants, is intended to reduce lessees' lease payments for publicly owned property. Additionally, lessees are released from the imposition of late interest and contractual penalties in the case of a late payment, except for the payment for services consumed. The purpose of the scheme is to mitigate the sudden liquidity shortages that the affected companies are facing because they had to close their business or reduce their activity due to the measures taken by the Latvian authorities to limit the spread of the coronavirus.

  • on 7 July 2020, a Latvian guarantee scheme to support undertakings with export activities affected by the coronavirus outbreak. The scheme is expected to provide for State guarantees on loans going up to €160 million. The support will be accessible to mid-sized and large undertakings whose exports represent more than 30% of their annual turnover. The scheme aims at limiting the risk associated with issuing loans to exporting companies affected by the economic impact of the coronavirus outbreak, thus helping them to continue their activities and to carry out the investments necessary to maintain their competitiveness following the outbreak.

  • on 3 July 2020, a €250 million Latvian measure to recapitalise airBaltic in the context of the coronavirus outbreak. With its main hub at Riga airport, airBaltic is the largest airline in Latvia. Its main shareholder is the Latvian State, which currently holds a participation of around 80%. After the recapitalisation, which will be carried in July 2020, the participation of the State will increase to above 96%. The airline plays a major role in the Latvian economy, notably because it ensures essential connectivity services within Latvia and from/to Latvia to other European and international destinations. The company also contributes significantly to foreign trade, as several Latvian businesses rely on its air services to connect with business centres in Europe and worldwide. In the second quarter of 2020, airBaltic suffered substantial losses due to the coronavirus outbreak and the travel restrictions that Latvia and other countries had to impose to limit the spread of the coronavirus. As a result, airBailtic is currently facing an acute risk of default and insolvency. The Commission found that the measure notified by Latvia is in line with the conditions set out in the Temporary Framework.

  • on 29 May 2020, a €800,000 Latvian scheme to support tour operators that bore the costs of the repatriation of travellers in the context of the coronavirus outbreak. The public support, which will take the form of direct grants, is intended to cover the financial costs incurred by those operators for the repatriation to Latvia of travellers who were on holiday abroad in the course of the outbreak. The aid will be channelled through the Latvian Consumer Rights Protection Centre. The purpose of the scheme is to mitigate the liquidity shortages that tour operators had to face due to the costs incurred to repatriate travellers and to help them progressively resume their activities during and after the outbreak.

  • on 12 May 2020, a €1.5 million Latvian scheme to support companies active in the primary agricultural production sector affected by the coronavirus outbreak. The support will be accessible to companies of all sizes active in this sector. Under the scheme, support will be granted in the form of zero-interest rate loans by the Rural Support Service, a state administration institution operating under the supervision of the Latvian Ministry of Agriculture. The scheme will enable companies active in the primary agricultural production sector to stabilise their cash flow and pay for supplied goods, raw materials (such as seeds, planting materials, plant protection products, mineral fertilisers) and services.

  • a €35.5 million Latvian scheme to support the agricultural, fishery, food and school catering sectors that are facing difficulties due to the coronavirus outbreak. The support takes the form of direct grants and aims to help these businesses cope with the liquidity problems brought about by the coronavirus crisis by compensating them for losses linked to the slowing down of the economic activity. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

  • on 23 March, two Latvian support measures under the State aid Temporary Framework. The schemes aim at enhancing the access to external financing for companies that are the most severely affected by the economic impact of the coronavirus outbreak: one is a loan guarantee scheme, and the other a subsidised loan scheme.