Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LV-2017-44/2695 – measures in Latvia
|Country||Latvia , applies nationwide|
|Time period||Open ended, started on 01 November 2017|
|Context||Green Transition, Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Kriss Karnitis (EPC) and Eurofound|
|Measure added||23 June 2022 (updated 25 October 2022)|
Altum, a state-owned development finance institution, is offering a loan for company energy efficiency and implementation of renewable energy projects. The loan can be used to improve companies' energy efficiency, including:
The applying company and its owner must have no up-to-date records of debts in the bank of Latvia's credit register, other debtors' registers, and no current tax debt to the state revenue service.
Companies are not eligible if they meet the criteria for opening insolvency proceeding, or they have been declared insolvent by a court.
The loan is especially relevant for companies if energy consumption is a significant cost item and exceeds €20,000 per year, for example for:
A company might use the loan to refinance existing projects or to purchase used equipment. The loan conditions are:
Funding for ALTUM comes from an €18 million loan from the European Investment Bank and from €3 million guarantees from the private finance for energy efficiency (PF4EE) instrument. Some other funding comes from green bonds issued by ALTUM itself.
The loan programme is in place since 1 November 2017. Up to July 2020 there are 45 approved loans for total amount around €20 million, the smallest approved project is €11,500, the largest approved amounts to €2,850,000, while the average project size is €497,000.
For example, wood processing company Erte Grupa has invested close to €1 million in improving energy efficiency, of which €471,000 have been received in the form of a loan from the development financial institution ALTUM. The launched energy efficiency project covers a third of the company's total technological capacity and will reduce energy costs per production unit by up to 35%.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Corporate Energy Efficiency Loan, measure LV-2017-44/2695 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2017-44_2695.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.