Further support in Covid-19 crisis should be more targeted - economics minister

RIGA - Further support in Covid-19 crisis should be more targeted, said Economics Minister Janis Vitenbergs in an interview with the Latvian public television today.

"If some restrictions remain into force, and it is not clear when they might be lifted, the support should be continued, otherwise how businesses may exist if they are not allowed to operate for more than six months. Without support these companies will be bankrupt, and we may not allow it," said Vitenbergs.

Also, he said that in 2021, more money has been paid in support payments so far than in full 2020.

At the same time, the minister said that the support should be more targeted.

"Initially we sis not know what will happen next week, which sectors will be restricted or closed, overall support was important. (...) Carrying out more detailed study, we see that there are sectors that ask for support even though their operations are not restricted," said Vitenbergs, naming construction, information and communication technologies as an example.

As reported, the Economics Ministry will promote to continue state support to companies stricken by Covid-19 crisis.

Meanwhile, Prime Minister Krisjanis Karins (New Unity) said at the government meeting that the government should start considering how to stop state support in Covid-9 crisis.

The Cabinet of Ministers today supported the Finance Ministry's proposal to allocate additional EUR 126.5 million for support measures in Covid-19 crisis. So far EUR 320 million have been earmarked for the purpose.