Šajā tīmekļa vietnē tiek izmantotas sīkdatnes. Turpinot lietot šo vietni, jūs piekrītat sīkdatņu izmantošanai. Uzzināt vairāk.
Teksta versija
LEGAL ACTS OF THE REPUBLIC OF LATVIA
home
 

Text consolidated by Valsts valodas centrs (State Language Centre) with amending regulations of:

24 March 2020 [shall come into force from 26 March 2020].

If a whole or part of a paragraph has been amended, the date of the amending regulation appears in square brackets at the end of the paragraph. If a whole paragraph or sub-paragraph has been deleted, the date of the deletion appears in square brackets beside the deleted paragraph or sub-paragraph.

 

Republic of Latvia

Cabinet
Regulation No. 150
Adopted 19 March 2020

Regulations Regarding Guarantees for the Enterprises whose Activity has been Affected by the Spread of COVID-19

Issued pursuant to
Section 12, Paragraph four of the Law
on Development Finance Institution

I. General Provisions

1. The Regulation prescribes the conditions for the provision of aid in the form of guarantees for the enterprises whose activity has been affected by the spread of COVID-19.

2. Guarantees for enterprises shall be granted by akciju sabiedrība "Attīstības finanšu institūcija Altum" [joint stock company Development Finance Institution Altum] (hereinafter - Altum) in accordance with the conditions laid down in this Regulation.

3. The following enterprises may receive the aid in accordance with this Regulation:

3.1. the micro, small and medium-sized enterprises who correspond to the definition specified in Annex 1 to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (hereinafter - Commission Regulation No 651/2014) or the definition specified in Annex 1 to Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (hereinafter - Commission Regulation No 702/2014);

3.2. the large enterprises - legal persons who correspond to the definition specified in Article 2(24) of Commission Regulation No 651/2014 or the definition specified in Article 2(26) of Commission Regulation No 702/2014.

[24 March 2020]

4. Within the meaning of this Regulation, linked enterprises are enterprises who correspond to the definition specified in Article 3(3) of Annex 1 to Commission Regulation No 651/2014 or the definition specified in Article 3(3) of Annex 1 to Commission Regulation No 702/2014.

5. The procedures for the issuing of guarantees, and also the measures for the disbursement of compensations and reduction of losses shall be determined in accordance with the civil contracts concluded between Altum and a credit institution or its subsidiary which is registered in Latvia and is entitled to provide financial services in Latvia. Considering the amount of guarantee, the coverage of losses shall be shared between the credit institution and Altum in proportion.

6. Funding from the State budget of not more than EUR 25 000 000 shall be available to Altum for the implementation of this programme.

[24 March 2020]

II. Financial Services to be Supported and the Amount of the Guarantee

7. The guarantee shall be granted for the following financial services:

7.1. investment loan;

7.2. loan for current assets, including credit limits (credit lines and overdraft facilities);

7.3. financial leasing, financial leasing limits.

8. Aid shall be granted:

8.1. for the new financial services referred to in Sub-paragraph 7.2 of this Regulation or the existing financial services referred to in Sub-paragraph 7.2 of this Regulation if the credit institution extends the term of operation of these financial service contracts;

8.2. for the existing financial services referred to in Sub-paragraphs 7.1 and 7.3 of this Regulation if the credit institution defers payments of the principal amount for the enterprise for up to two years and, if necessary, extends the term of operation of the financial service contract.

9. The guarantee shall be granted if the enterprise is economically viable and it is proven in the guarantee application documents submitted to Altum in accordance with Paragraph 5 of this Regulation that the activity of the specific enterprise has been affected by the consequences of the spread of COVID-19 and they have had an impact on the financial situation of the enterprise - the operational financial data show a fall in turnover in comparison with the relevant period of the previous year or the liquidity ratios are declining in comparison with the data on 2019.

10. The guarantee shall cover up to 50 % of the outstanding principal amount of the financing.

11. The sum of financial service covered by guarantee shall not exceed 25 % of the total turnover for 2019 of the enterprise whereas the maximum amount of guarantee for one enterprise and the group of enterprises linked thereto shall not exceed EUR 5 million.

[24 March 2020]

12. [24 March 2020]

13. [24 March 2020]

14. The term of guarantee shall not exceed six years for the financial services referred to in Sub-paragraphs 7.1 and 7.3 of this Regulation and three years for the financial services referred to in Sub-paragraph 7.2 of this Regulation.

[24 March 2020]

III. Sectors, Activities and Enterprises Not to be Supported

15. Aid shall not be granted to the following sectors and activities:

15.1. trade in weapons and ammunition (Class 47.78 of NACE Rev. 2 "Other retail sale of new goods in specialised stores");

15.2. manufacture and sale of tobacco products (Division 12 "Manufacture of tobacco products", Class 46.35 "Wholesale of tobacco products" and Class 47.26 "Retail sale of tobacco products in specialised stores" of NACE Rev. 2);

15.3. sale of alcohol (Class 46.34 "Wholesale of beverages" and Class 47.25 "Retail sale of beverages in specialised stores" of NACE Rev. 2);

15.4. gambling and betting activities (Division 92 "Gambling and betting activities" of NACE Rev. 2);

15.5. financial and insurance activities (Section K "Financial and insurance activities" of NACE Rev. 2);

15.6. activities with real estate (Section L "Real estate activities", Group 68.1 "Buying and selling of own real estate" and Class 68.31 "Real estate agencies" of NACE Rev. 2);

15.7. development of such real estate which should be registered as a residential house or multi-unit residential house in the State Immovable Property Cadastre Information System.

16. The guarantee shall not be granted to an enterprise if it had run in financial difficulties as on 31 December 2019 in accordance with at least one of the following indications:

16.1. more than half of the subscribed capital has been lost due to the losses accumulated by the capital company. Such situation can occur if a negative result which exceeds half of the subscribed capital is obtained when subtracting the cumulative losses from reserves (and all other items that are generally considered as part of the equity capital);

16.2. more than half of the capital indicated in the accounting records has been lost due to cumulative losses for the enterprise at least some shareholders of which have unlimited liability for its debt obligations;

16.3. insolvency proceedings have been declared by a court judgment or legal protection proceedings are being executed by court judgment, or extrajudicial legal protection proceedings are being executed by a court judgment for the enterprise, or its economic activity has been terminated, or the enterprises meet the criteria specified in laws and regulations based on which a creditor may request insolvency proceedings;

16.4. in accordance with the data of the statements for the last two completed financial years, the debt obligation and equity capital balance sheet value ratio of a large enterprise has exceeded 7.5 and the interest coverage ratio thereof calculated in accordance with EBITDA (earnings before interest, taxes, depreciation and amortisation) has been lower than 1.0.

IV. Guarantee Premium and Conditions for the State Aid

[24 March 2020]

17. The annual rate of guarantee premium shall be 0.5 % of the sum of financial services covered by guarantee. If the term of guarantee exceeds four years for the large enterprises, the annual rate of guarantee premium shall be 1.25 % from the fourth year and until the end of the term of guarantee.

[24 March 2020]

18. [24 March 2020]

19. If a beneficiary has violated requirements of this Regulation, it has an obligation to repay to Altum the entirety of the State aid which has been unlawfully received within the framework of the project together with interest the rate of which is published by the European Commission in accordance with Article 10 of Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (hereinafter - Commission Regulation No 794/2004) by adding 100 basis points thereto from the day when the State aid was disbursed to the beneficiary until the day when it is recovered, following the method for applying interest specified in Article 11 of Commission Regulation No 794/2004.

20. The aid provided in accordance with this Regulation may not be combined with the aid provided in the form of loans for current assets by Altum under the European Commission decision. The aid provided in accordance with this Regulation for the same eligible costs may not be combined with financing within the framework of any other State aid projects or programmes.

[24 March 2020]

21. Altum shall ensure publication of information in accordance with the requirements for publicity measures specified in Article 9(1)(c) and (4) of Commission Regulation No 651/2014 and the regulatory enactment specifying the procedures for the publication of information regarding the provided aid for commercial activity and for granting and cancelling the right to use the electronic system.

22. Altum shall ensure recording of the aid and information provided in accordance with this Regulation. Altum shall store the abovementioned information for 10 years from the day when the last aid has been granted and, upon a request, shall submit it to the European Commission.

23. The Ministry of Finance shall, by 31 December 2020, inform the European Commission of this measure which is being implemented in accordance with the temporary regulatory framework in relation to COVID-19 and shall submit to the European Commission the annual report on the provided aid.

V. Closing Provision

24. Altum shall provide guarantees until 31 December 2020.

[24 March 2020]

Prime Minister A. K. Kariņš

Acting for the Minister for Economics,
Minister for the Interior S. Ģirģens

 

Annex
Cabinet Regulation No. 150
19 March 2020

Annual Rates of the Safe-harbour Premium

[24 March 2020]


Translation © 2020 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Noteikumi par garantijām saimnieciskās darbības veicējiem, kuru darbību ietekmējusi Covid-19 izplatība Status:
In force
in force
Issuer: Cabinet of Ministers Type: regulation Document number: 150Adoption: 19.03.2020.Entry into force: 21.03.2020.Theme: COVID-19Publication: Latvijas Vēstnesis, 57A, 20.03.2020. OP number: 2020/57A.3
Language:
LVENRU
Related documents
  • Amendments
  • Issued pursuant to
  • Annotation / draft legal act
  • Explanations
313371
{"selected":{"value":"26.03.2020","content":"<font class='s-1'>26.03.2020.-...<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},"data":[{"value":"26.03.2020","iso_value":"2020\/03\/26","content":"<font class='s-1'>26.03.2020.-...<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},{"value":"21.03.2020","iso_value":"2020\/03\/21","content":"<font class='s-1'>21.03.2020.-25.03.2020.<\/font> <font class='s-2'>Pamata<\/font>"}]}
26.03.2020
87
0
  • Twitter
  • Facebook
  • Draugiem.lv
 
0
Latvijas Vestnesis, the official publisher
ensures legislative acts systematization
function on this site.
All Likumi.lv content is intended for information purposes.
About Likumi.lv
News archive
Useful links
For feedback
Contacts
Mobile version
Terms of service
Privacy policy
Cookies
Latvijas Vēstnesis "Everyone has the right to know about his or her rights."
Article 90 of the Constitution of the Republic of Latvia
© Official publisher "Latvijas Vēstnesis"
ISO 9001:2015 (quality management system)
ISO 27001:2013 (information security)