Latvia has received first advance payment from EU Recovery and Resilience Facility worth EUR 237 million

  • 2021-09-10
  • LETA/TBT Staff

RIGA - The Latvian Treasury on Friday received the first advance payment from the EU Recovery and Resilience Facility worth EUR 237 million, said Finance Minister Janis Reirs' aide Ints Dalderis (New Unity).

He said that the granted sum accounts for 13 percent of the total funding available for Latvia.

"Investments from the recovery fund ensures Latvia's acceleration in implementation of the reform, promoting productivity, economic and digital transformation, achievement of climate goals, reduction of inquality, improvement of health care and strengthening the rule of law. In order to implement the 24 reforms and 61 investment measures included in the plan, the next steps should be made soon," said Reirs.

European Commission's vice chairman Valdis Dombrovskis underscored that the firs payment of EUR 237 million is a significant step for Latvia's economic recovery after the Covid-19 crisis.

Dombrovskis said that Latvia is among the first EU member states who prepared the national reform plans, and also among the first ones to receive the firs payment.

"Latvia will receive EUR 1.8 billion for improvement of the quality of life for Latvia's people, make its economy more resilient and improve its competitivemenss, considering transformation to climate neutral and digital economy," said Dombrovskis.

Latvia's Recovery and Resilience Plan was submitted to the Commission on April 30 in the amount of EUR 1.826 billion. The plan stipulates aid in six areas: achieving climate goals, digital transformation, reducing inequality, economic transformation and productivity reforms, the health sector and strengthening the rule of law.

The plan contains 85 measures, including 24 reforms and 61 investments.

According to the plan, EUR 676.2 million will be allocated for achieving climate goals (sustainable transport, energy efficiency, renewables and decarbonization of electricity grids, adaptation to climate change), EUR 365.3 million for digital transformation (digitization of public and private sectors, e-government services, data management, digital skills, 5G), EUR 370 million for reducing inequality (road reconstruction, school infrastructure, affordable housing, industrial parks, social services, long-term care, skills development).

EUR 196 million will be set aside for economic transformation and productivity reforms (innovation management, promotion of private sector research and innovation, investment in research, management of higher education and science, career development in research), EUR 181.5 million for healthcare (hospital and outpatient infrastructure, human resources, sustainability, public health), and EUR 37 million for strengthening the rule of law (combating economic crime, prevention of money laundering, public administration, procurement).