Leftover Covid-19 funds to be used to help businesses switch focus away from Russia and Belarus

  • 2022-04-26
  • LETA/TBT Staff

RIGA - The government on Tuesday approved in principle the proposal to reallocate leftover funds that had been earmarked for dealing with the Covid-19 crisis to switching businesses' focus away from Russian and Belarusian markets. 

The Cabinet of Ministers approved a report calling for a reallocation of EUR 94.9 million worth of Covid-19 funds for measures including liquidity support in the form of loans and guarantees, export loan guarantees and an own capital fund. 

EUR 39 million worth of funds will be used to support the liquidity of SMEs and large enterprises. The proposal provides for introducing a loan program for companies' working capital and investment. The support scheme will be available to all sectors, except gambling, tobacco, alcohol, financial brokerage and real estate. 

Liquidity support in the form of guarantees is planned at EUR 22.5 million. This support is meant for microenterprises, SMEs and large enterprises whose operations have been affected by the war in Ukraine. 

Export loan guarantees are planned at EUR 1.3 million. This support will be made available to companies exporting their goods and services to offset their political and other risks. This program still needs approval from the European Commission. 

Around EUR 32.1 million will be available in the form of an own capital fund. This support will be provided to viable and well-managed enterprises whose operations have been affected by Russia's military aggression against Ukraine.