Regulations Regarding the Implementation of the Programme "Venture Capital Investments"

Issued pursuant to Section 19, Clause 14 of the Law
on Management of European Union Funds for the
2021-2027 Programming Period and Section 12, Paragraph four
of the Law on Development Finance Institution

I. General Provisions

1. The Regulation prescribes:

1.1. the procedures by which the programme "Venture Capital Investments" (hereinafter - the Programme) and Activity 1.2.3.2 "Venture Capital Investments" of Specific Aid Objective 1.2.3 "Promoting Sustainable Growth and Competitiveness of Small and Medium-Sized Enterprises (SMEs) and Job Creation in SMEs, Including by Productive Investments" of the European Union's Cohesion Policy Programme for 2021-2027 (hereinafter - the Activity) shall be implemented;

1.2. the funding available for the Programme;

1.3. the conditions for the eligibility of costs.

2. The following terms are used in the Regulation:

2.1. final beneficiary - a performer of economic activity which conforms to the following conditions at the time of granting the aid:

2.1.1. it corresponds to the definition of micro, small, and medium-sized enterprises specified in Annex I 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);

2.1.2. it is not listed at the level of a group of micro, small, and medium-sized enterprises in accordance with the definition referred to in Article 2(76) of Commission Regulation No 651/2014, in conformity with the requirements of Section 21(3) of Commission Regulation No 651/2014;

2.1.3. according to the information available publicly in the database of tax (fee) debtors administered by the State Revenue Service, it does not have any debt of taxes or fees, including debt of the mandatory State social insurance contributions, which exceeds EUR 150 in total, except for tax payments for which the payment term has been extended, divided in instalments, deferred, or re-divided in instalments in accordance with Section 24, Paragraphs one, 1.³, and 1.⁷ of the law On Taxes and Fees;

2.1.4. it is not considered an undertaking in difficulty in accordance with Article 2(18) of Commission Regulation (EU) No 651/2014, and it has submitted a declaration that it does not conform to the criteria specified in legal acts in order to request insolvency proceedings thereto upon request of creditors;

2.1.5. it conforms to the restrictions on sectors and activities not to be aided as referred to in Chapter III of this Regulation;

2.1.6. it is engaged in the development, production, or improvement of scalable business models and innovative products or services;

2.2. aid - initial equity investment in accordance with the definition specified in Article 2(74) of Commission Regulation No 651/2014 or initial quasi-equity investment in accordance with the definition specified in Article 2(66) of Commission Regulation No 651/2014 and Article 21(17) of Commission Regulation (EU) No 651/2014, or follow-on investment in accordance with the definition specified in Article 2(77) of Commission Regulation No 651/2014;

2.3. time of granting the aid - the moment when the financial intermediary has taken the decision to grant aid;

2.4. financial intermediary - a commercial company that manages the venture capital funds established within the scope of this Regulation in accordance with the requirements laid down in Article 21(13), (14), (15), (16), and (17) of Commission Regulation No 651/2014 and conforms to the following criteria at the time when the contract is concluded:

2.4.1. according to the information available in the database of tax (fee) debtors administered by the State Revenue Service, it does not have any debt of taxes or fees, including debt of the mandatory State social insurance contributions, which exceeds EUR 150 in total;

2.4.2. it is not considered an undertaking in difficulty in accordance with Article 2(18) of Commission Regulation (EU) No 651/2014, and it has submitted a declaration that it does not conform to the criteria specified in legal acts in order to request insolvency proceedings for it upon request of creditors;

2.5. venture capital fund - a limited partnership that provides aid for funding to final beneficiaries in order to promote the development and increase in value of the final beneficiaries, and also to generate profit as a result of making such investments. The following venture capital funds shall be distinguished within the scope of this Regulation:

2.5.1. start-up venture capital fund - a venture capital fund established by the financial intermediary which provides aid in the form of pre-seed and seed funds to final beneficiaries;

2.5.2. early-stage venture capital fund - a venture capital fund established by the financial intermediary which provides aid in the form of early-stage (early growth) venture capital to final beneficiaries;

2.5.3. growth-stage venture capital fund - a venture capital fund established by the financial intermediary which provides aid in the form of growth-stage venture capital to final beneficiaries;

2.6. replacement capital investment - acquisition of the existing capital shares of the final beneficiary from a previous investor or shareholder. This may only be done if the replacement capital investment is combined with a new capital that corresponds to at least 50 % of each investment round in accordance with Article 21(7) of Commission Regulation No 651/2014. The replacement capital investment shall be considered aid for the final beneficiary;

2.7. effective time - the time determined proportionally by taking into account the number of months in the investment period up to 31 December 2029 compared to the total number of months in the entire investment period.

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3. The objective of the Activity is to ensure the availability of funding, thus promoting the establishment and development of new, innovative performers of economic activity in Latvia with high growth and productivity potential.

4. Akciju sabiedrība "Attīstības finanšu institūcija Altum" [joint-stock company Development Finance Institution Altum] (hereinafter - the company Altum) shall implement the Programme in conformity with the requirements laid down in this Regulation and Cabinet Regulation No. 630 of 17 October 2017, Regulations Regarding the Basic Requirements for an Internal Control System for the Prevention of Corruption and Conflict of Interest in an Institution of a Public Person, supervise the use of public funding according to the specified objectives and the conditions referred to in this Regulation, and, within the time limits specified in the financing agreement, enter information into the Cohesion Policy Funds Management Information System.

5. The Programme shall be implemented and the aid shall be provided through venture capital funds. The total planned public funding for the implementation of the Programme shall amount to EUR 80 600 000, including:

5.1. for the implementation of the Programme until 31 December 2029, the total eligible funding planned and available for the Activity has been set in accordance with the legal act laying down the procedures for implementing the financial instruments to be used within the scope of the European Union's Cohesion Policy Programme for 2021-2027, the available funding, the aided activities, and the eligible costs;

5.2. for the implementation of the Programme from 1 January 2030, funding in the amount of up to EUR 11 500 000 shall be available for the reimbursement of Activity 3.1.2.1 "Venture Capital" of Specific Aid Objective 3.1.2 "Increasing the Number of Rapidly Growing Enterprises" of the Operational Programme "Growth and Employment" of the European Union Structural Funds and the Cohesion Fund for the 2014-2020 Programming Period.

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5.¹ The management fee of the financial intermediary calculated and disbursed to the financial intermediary by 31 December 2029 shall be eligible in full amount from the funding referred to in Sub-paragraph 5.1 of this Regulation if investments in an amount of at least 70 % of the subscribed capital of the relevant fund intended for investments in final beneficiaries and financed from the funding referred to in Sub-paragraph 5.1 of this Regulation have been made in final beneficiaries until 31 December 2029, considering the effective time of the investment period.

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5.² If, by 31 December 2029, investments in an amount of less than 70 % of the subscribed capital of each relevant fund intended for investments in final beneficiaries and financed from the funding referred to in Sub-paragraph 5.1 of this Regulation have been made in final beneficiaries, considering the effective time of the investment period, the management fee of the financial intermediary calculated and disbursed to the financial intermediary by 31 December 2029 shall be:

5.²1. eligible proportionally from the funding referred to in Sub-paragraph 5.1 of this Regulation, by calculating the ratio of investments made in final beneficiaries to the investments intended to be made in final beneficiaries in an amount of at least 70 % of the subscribed capital of the relevant fund intended for investments in final beneficiaries and for which the funding referred to in Sub-paragraph 5.1 of this Regulation has been used, considering the effective time of the investment period;

5.²2. eligible from the amount of funding referred to in Sub-paragraph 5.2 of this Regulation that is not eligible under Sub-paragraph 5.²1 of this Regulation.

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5.³ A reduction in the management fee shall be applied to the management fee of financial intermediary disbursed by company Altum to the financial intermediary after the end of the investment period if the financial intermediary has not invested at least 70 % of the capital subscribed by the company Altum. If the financial intermediary has invested the following in final beneficiaries within 90 days after the end of the investment period:

5.³1. less than 50 % of the capital subscribed by the company Altum, a 50 % reduction shall be applied to the management fee of the financial intermediary;

5.³2. from 50.01 % to 60 % of the capital subscribed by the company Altum, a 30 % reduction shall be applied to the management fee of the financial intermediary;

5.³3. from 60.01 % to 69.99 % of the capital subscribed by the company Altum, a 10 % reduction shall be applied to the management fee of the financial intermediary.

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6. The financial intermediary shall raise funding in each venture capital fund from an independent private investor that corresponds to the definition specified in Article 2(72) of Commission Regulation No 651/2014 (hereinafter - the private investor) in the following amount:

6.1. at least 10 % of the total amount of each start-up venture capital fund;

6.2. at least 40 % of the total amount of an early-stage venture capital fund;

6.3. at least 40 % of the total amount of a growth-stage venture capital fund.

7. If the financial intermediary fails to raise the funding for the managed venture capital fund in accordance with Paragraph 6 of this Regulation, the company Altum has the right to redirect the remaining funding intended for the financial intermediary to a venture capital fund managed by another financial intermediary or, after agreeing with the Ministry of Economics, to another activity referred to in the legal act laying down the procedures for implementing the financial instruments to be used within the scope of the European Union's Cohesion Policy Programme for 2021-2027, the available funding, the aided activities, and the eligible costs, in accordance with the procedures laid down in legal acts.

8. After granting of aid, at least 70 % of the final beneficiaries aided by each start-up venture capital fund have provided funds for research and development within the scope of the Programme.

9. When evaluating the investment strategies submitted by financial intermediaries in accordance with the procedures referred to in Paragraph 10 of this Regulation, the company Altum shall assign a higher priority to the strategies that provide for:

9.1. focusing on export-capable enterprises and increasing the Latvian export volume;

9.2. the promotion of investments in research and development, exceeding the requirement referred to in Paragraph 8 of this Regulation;

9.3. acceleration in the case of start-up venture capital funds.

II. Requirements for Financial Intermediaries

10. Financial intermediaries shall be selected in an open, transparent, and non-discriminatory selection procedure in conformity with the conditions referred to in Article 21(14) of Commission Regulation No 651/2014 and applying the conditions of the laws and regulations governing public procurement. Contracts for limited partnerships shall be concluded in accordance with the legal act laying down the procedures for implementing the financial instruments to be used within the scope of the European Union's Cohesion Policy Programme for 2021-2027, the available funding, the aided activities, and the eligible costs.

11. The company Altum has the obligation to provide the Ministry of Economics information on the procedure for selecting financial intermediaries and the specified criteria, and also up-to-date information in relation to the introduction and implementation of the Programme.

12. After the company Altum has selected financial intermediaries, they shall establish venture capital funds as new limited partnerships in accordance with the laws and regulations in the field of commercial activity.

13. Financial intermediaries shall manage the early-stage and growth-stage venture capital funds established within the scope of this Regulation on the basis of commercial principles and by applying the best industry practice according to the methodological materials developed by Invest Europe, the European Venture Capital Association.

14. The income of the venture capital fund generated from making investments or losses shall be distributed among all participants of these funds, including the company Altum, in accordance with Article 21(10) of Commission Regulation No 651/2014 and the conditions of the concluded limited partnership contract for the distribution of the income and losses of the venture capital fund.

15. When managing venture capital funds, financial intermediaries shall comply with the requirements laid down in Article 21(11) of Commission Regulation No 651/2014.

16. When taking the decision to grant aid, financial intermediaries shall ensure and be responsible for due compliance with the legal acts binding on the financial intermediaries in the field of the prevention of money laundering and terrorism and proliferation financing and in the field of the compliance with sanctions.

17. At the time of granting investment, financial intermediaries shall ensure the absence of any conflict of interests in accordance with the requirements laid down in Article 61 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (hereinafter - Regulation No 2018/1046).

18. When taking the decision to grant aid to the final beneficiary, the financial intermediary shall ascertain that the principles laid in Article 209(1) of Regulation 2018/1046 are complied with.

19. Within the scope of this Regulation, financial intermediaries shall provide aid to economically viable final beneficiaries in accordance with the requirements laid down in Article 58(2) and (7) and Article 59(7) of Regulation (EU) No 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (hereinafter - Regulation No 2021/1060), and also according to the investment strategies of the financial intermediaries and decisions on the provision of aid shall be taken according to the best industry practice and the conditions referred to in this Regulation.

20. Aid provided by financial intermediaries in Latvia shall be considered aid to the final beneficiary who, at the time of granting the aid, conforms to at least one of the following conditions:

20.1. it performs at least one of its economic activities (for example, research and development, sales and/or provision of services from Latvia, production, prototyping or testing, sales) in the Republic of Latvia;

20.2. it has been registered in the Republic of Latvia.

21. Within the scope of this Regulation, financial intermediaries shall grant aid to the final beneficiaries within the time limit specified in the contract for the limited partnership - up to 10 years. The decision to grant aid in accordance with Commission Regulation No 651/2014 may be taken until the expiry of this Regulation. If aid is granted in accordance with Paragraph 21.¹ of this Regulation, the decision to grant aid in accordance with Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (hereinafter - Commission Regulation No 2023/2831) may be taken until the expiry date of this Regulation.

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21.¹ If the final beneficiary does not conform to the requirements referred to in Sub-paragraph 2.1.2 of this Regulation, the aid may be granted as de minimis aid in accordance with Article 21(18) of Commission Regulation No 651/2014, taking into account that:

21.¹1. in relation to Article 21(18)(a) of Commission Regulation No 651/2014, the conditions provided for in Commission Regulation No 2023/2831 must be met. The financial intermediary shall grant aid to a single undertaking by checking whether the planned de minimis aid, together with the de minimis aid granted within the previous three years from the date of granting the aid, does not exceed the maximum amount of the de minimis aid specified in Article 3(2) of Commission Regulation No 2023/2831 at the level of a single undertaking, and also by complying with the conditions of Article 3(8) of Commission Regulation No 2023/2831 in case of a merger or acquisition of enterprises and the conditions of Article 3(9) of Commission Regulation No 2023/2831 in case of the division of an enterprise. A single undertaking is an enterprise which meets the criteria referred to in Article 2(2) of Commission Regulation No 2023/2831;

21.¹2. Article 21(18)(b) of Commission Regulation No 651/2014 is met;

21.¹3. in relation to Article 21(18)(c) of Commission Regulation No 651/2014, additional funding must be raised from the financial intermediary or final beneficiary of the independent private investor defined in Article 2(72) of Commission Regulation No 651/2014 to achieve such overall private participation rate which reaches the following in the final beneficiary at the level of the group of micro, small, and medium-sized enterprises in the form of seed capital, start-up capital or expansion capital investments:

21.¹3.1. at least 60 % if the funding referred to in Sub-paragraph 5.2 of this Regulation for aid provided outside of Latvia or aid provided in Latvia from 1 January 2028 is used as the source of funding;

21.¹3.2. at least 30 % if the funding referred to in Sub-paragraph 5.1 or 5.2 of this Regulation is used as the source of funding and the aid is provided in Latvia until 31 December 2027;

21.¹4. the final beneficiary provides information on the de minimis aid granted previously in conformity with the laws and regulations governing the procedures for the accounting and granting the de minimis aid;

21.¹5. the financial intermediary has developed an internal procedure for granting the de minimis aid, including the conditions for granting the de minimis aid.

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III. Sectors and Activities not to be Aided

22. The venture capital funds referred to within the scope of this Regulation shall not provide aid for the following activities and sectors of final beneficiaries:

22.1. the activities and sectors specified in Article 1(2)(c) and (d) of Commission Regulation No 651/2014;

22.2. the activities and sectors specified in Article 1(3)(a), (b), (c), and (d) of Commission Regulation No 651/2014 according to the definitions specified in Article 2(8), (10), and (11) of Commission Regulation No 651/2014, and, if the merchant is subject to a non-enforced recovery order in accordance with a previous decision of the European Commission, in accordance with Article 1(4)(a) of Commission Regulation No 651/2014;

22.3. the activities and sectors specified in Article 7(1) of Regulation (EU) 2021/1058 of the European Parliament and of the Council on the European Regional Development Fund and on the Cohesion Fund;

22.4. sale of alcoholic beverages (wholesale of alcoholic beverages included in Class 46.34 "Wholesale of beverages" and retail sale of alcoholic beverages included in Class 47.25 "Retail sale of beverages in specialised stores" of NACE Rev. 2);

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

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

22.7. extinguishing of existing or new liabilities, including debt interest, in accordance with Article 64(1)(a) of Regulation No 2021/1060;

22.8. acquisition of land if the cost of the acquisition of land exceeds 10 % of the total amount of aid for the final beneficiary or 15 % of the total amount of aid for the final beneficiary if the land is located in an abandoned area or a former industrial territory with buildings in accordance with Article 64(1)(b) of Regulation 2021/1060;

22.9. the sectors and activities specified in Article 1(1) of Commission Regulation No 2023/2831 (for aid provided in accordance with Paragraph 21.¹ of this Regulation).

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23. If the final beneficiary is concurrently operating in the sectors and activities to be aided and not to be aided within the scope of this Regulation, it shall ensure that activities or costs in the abovementioned sectors and activities are separated in accordance with Article 1(3) of Commission Regulation No 651/2014 or Article 1(2) of Commission Regulation No 2023/2831.

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IV. Aid in Start-up Venture Capital Funds

24. Aid from the start-up venture capital fund in the form of pre-seed and seed funds shall be provided to final beneficiaries as risk finance aid in accordance with the requirements laid down in Article 21 of Commission Regulation No 651/2014.

25. Aid from the start-up venture capital fund in the form of pre-seed and seed funds may be received by a final beneficiary which meets the requirements laid down in Article 21(3)(a), Article 21(3)(b)(i), Article 21(3)(c), and Article 21(4) of Commission Regulation No 651/2014 at the level of a group of micro, small, and medium-sized enterprises.

26. Aid from the start-up venture capital funds shall be provided as follows:

26.1. in the form of pre-seed funds to final beneficiaries that, at the time of granting the aid, conform to the requirements referred to in Paragraph 20 of this Regulation;

26.2. in the form of seed funds to final beneficiaries that, at the time of granting the aid, conform to the requirements referred to in Paragraph 20 of this Regulation, amounting to at least 50 % of the total amount of aid in the form of seed funds in the start-up venture capital fund. The remaining amount of the total aid in the form of seed funds in the start-up venture capital fund shall be distributed among final beneficiaries whose place of economic activity is in the European Union at the time of granting the aid.

27. The financial intermediary must primarily use the aid in the form of seed funds for the further development of the final beneficiaries who have received aid in the form of pre-seed funds within the scope of this Regulation or who have received aid from other funds capitalised by the company Altum.

28. The maximum amount of aid from the start-up venture capital fund per one final beneficiary shall be as follows:

28.1. aid in the form of pre-seed funds - EUR 250 000;

28.2. aid in the form of seed funds - EUR 1 500 000.

29. Each start-up venture capital fund shall provide aid in the form of pre-seed funds amounting to at least 15 % of the total funding of the fund.

30. The total amount of co-funding of private investors for aid in the form of pre-seed and seed funds at the level of final beneficiaries or financial intermediaries shall conform to the conditions specified in Article 21(12) of Commission Regulation No 651/2014.

V. Aid in Early-Stage and Growth-Stage Venture Capital Funds

31. Aid from the early-stage and growth-stage venture capital funds shall be provided to final beneficiaries as risk finance aid in accordance with the requirements laid down in Article 21 of Commission Regulation No 651/2014.

32. Aid from the early-stage and growth-stage venture capital funds may be received by a final beneficiary which conforms to the requirements laid down in Article 21(3)(a), Article 21(3)(b)(i), Article 21(3)(c), and Article 21(4) of Commission Regulation No 651/2014 at the level of a group of micro, small, and medium-sized enterprises.

33. Aid in the early-stage venture capital funds shall be provided to the final beneficiary in order to support the development and early growth thereof.

34. Aid in the growth-stage venture capital funds shall be provided to the final beneficiary in order to support (including finance) the growth and competitiveness thereof.

35. The maximum amount of aid per single final beneficiary shall be as follows:

35.1. in the early-stage venture capital fund - EUR 2 000 000;

35.2. in the growth-stage venture capital fund - EUR 4 000 000.

36. The early-stage and growth-stage venture capital fund shall provide aid to a single final beneficiary the total amount of which does not exceed 15 % of the amount of the early-stage or growth-stage venture capital fund.

37. Early-stage and growth-stage venture capital funds shall provide aid amounting to at least 50 % of the total amount of aid of each fund to final beneficiaries that conform to the requirements referred to in Paragraph 20 of this Regulation at the time of granting the aid. Early-stage and growth-stage venture capital funds may also provide aid to final beneficiaries that do not conform to the requirements referred to in Paragraph 20 of this Regulation but perform economic activity in the European Union. The amount of such aid shall not exceed 50 % of the total amount of aid of each early-stage or growth-stage venture capital fund.

38. The total amount of co-funding of private investors in the aid provided by early-stage and growth-stage venture capital funds at the level of final beneficiaries or financial intermediaries shall conform to the conditions specified in Article 21(12) of Commission Regulation No 651/2014.

VI. Aid Intensity and Cumulation

39. The amount of aid granted within the scope of this Regulation in accordance with Article 21 of Commission Regulation No 651/2014 shall be equal to the amount of the investment made by the early-stage or the growth-stage venture capital fund, except when the aid is provided as the initial quasi-equity investment in accordance with Article 2(66) and Article 21(17) of Commission Regulation No 651/2014. In such a case, the gross grant equivalent shall be calculated by deducting the amount of interest actually applied from the amount of interest payable in accordance with the base rate set by the European Commission for the relevant period (published on the website of the European Commission's Directorate-General for Competition), and also the risk rate the percentage of which is determined according to the rating of the beneficiary of the loan issued by the financial intermediary and the security provided thereby, but not less than 650 basis points or not less than 1000 basis points for an unsecured loan.

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40. The de minimis aid granted within the scope of this Regulation may be combined with another de minimis aid, including for the same eligible costs, until the relevant threshold specified in Article 3(2) of Commission Regulation No 2023/2831 if the relevant maximum aid intensity does not exceed 100 % for the aid unit or cost item after combining the aids. Aid provided within the scope of this Regulation in accordance with Article 21 of Commission Regulation No 651/2024 may be combined with the following in conformity with Paragraphs 41 and 42 of this Regulation:

40.1. other risk finance aid, taking into account the maximum amount of risk finance aid specified in Article 21(8) of Commission Regulation No 651/2014 and the principle of public and private funding referred to in Paragraphs 29 and 36 of this Regulation;

40.2. other funding granted within the scope of a State aid programme, an individual aid project, or a decision of the European Commission, without exceeding the funding intensity and amount provided for in the relevant State aid programme, the individual aid project, or decision of the European Commission, and also without exceeding the amount of the maximum public funding and the maximum threshold thereof which has been specified in the relevant State aid programme, the individual aid project, or decision of the European Commission (except for the case referred to in Paragraph 41 of this Regulation).

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41. Aid granted within the scope of this Regulation may not be combined with aid received within the scope of another State aid programme which has been granted for the same purpose if the aid provided within the scope of another State aid programme is financed from European Union funds.

42. If a performer of economic activity intends to cumulate aid (except for the restriction on the combination of aid referred to in Paragraph 41 of this Regulation), then information on the planned or granted aid for commercial activity shall be submitted together with the project, indicating the date of granting the aid, the provider of aid, the aid activity, the aid intensity, and the planned or granted amount of aid.

VII. Aid Accounting and Recovery

43. If the requirements of Commission Regulation No 651/2014 or Commission Regulation No 2023/2831 are violated, the aid beneficiary has the obligation to reimburse to the company Altum the aid for commercial activity received unlawfully within the scope of the aid project, together with interest, from the funds that are free from the aid for commercial activity in accordance with the conditions of Chapter IV or V of the Law on Control of Aid for Commercial Activity.

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44. The company Altum shall ensure the following:

44.1. accounting and storage of information on the issued aid for 10 years, starting from the day when the last aid is granted in accordance with this Regulation, and also submit this information to the European Commission upon request;

44.2. publication of information on the aid provided within the scope of this Regulation in accordance with Article 9(1), (2), and (4) of Commission Regulation No 651/2014 in conformity with the legal act regarding the procedures for publishing information on the provided aid for commercial activity and granting and cancelling the right to use the electronic system.

45. Financial intermediaries shall:

45.1. ensure accounting of the aid provided within the scope of this Regulation (including detailed informative and supporting documentation necessary to ascertain that the conditions referred to in this Regulation are met) and submit this information to the company Altum or the European Commission upon request;

45.2. store documentation (including documentation related to accounting) for 10 years starting from the day when the last aid is granted in accordance with this Regulation.

46. The final beneficiary shall store the accounted information on the received aid for 10 years starting from the day when the aid is granted within the scope of this Regulation.

VIII. Closing Provision

47. Contracts for venture capital funds shall be entered into with the financial intermediaries within six months from expiry of Commission Regulation No 651/2014 in accordance with Article 58(4) of Commission Regulation No 651/2014.

Prime Minister,
Acting Minister for Foreign Affairs A. K. Kariņš

Minister for Economics I. Indriksone

Translation © 2025 Valsts valodas centrs (State Language Centre)