Agriculture, Covid-19, EU – Baltic States, Financial Services, Latvia, Markets and Companies

“This EUR 1.5 million scheme will enable the provision of zero-interest rate loans of up to EUR 100,000 to companies active in the agricultural sector in Latvia. The measure will help them cover their immediate liquidity needs and continue their essential activities during these difficult times. We continue to work with Member States to ensure that national support measures to mitigate the economic impact of the coronavirus outbreak can be put in place in a coordinated way, in line with EU rules,'' Executive Vice-President Margrethe Vestager, in charge of competition policy, said.

The support will be accessible to companies of all sizes active in this sector.

Under the scheme, support will be granted in the form of zero-interest rate loans by the Rural Support Service, a state administration institution operating under the supervision of the Latvian Ministry of Agriculture.

The scheme will enable companies active in the primary agricultural production sector to stabilize their cash flow and pay for supplied goods, raw materials (such as seeds, planting materials, plant protection products, mineral fertilizers) and services.

The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Framework. In particular, the amount of the zero-interest rate loan per company does not exceed EUR 100,000 and the loan agreements will be signed no later than on December 31, 2020.