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-2020-14/651 – Updated – measures in Latvia
|Country||Latvia , applies nationwide|
|Time period||Temporary, 03 April 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Rescue procedures in case of insolvency or adaptation of insolvency regulation
|Author||Kriss Karnitis (EPC) and Eurofound|
|Measure added||15 April 2020 (updated 16 November 2021)|
The Ministry of Justice has prepared and the Parliament has approved changes in insolvency procedures and legal protection process procedures - a form of arrangement with creditors - to be used during state emergency period caused by spread of COVID-19.
Measures are established by the law 'On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19' (adopted on 20 March 2020, valid from 22 March 2020).
Until 1 September 2020, creditors are prohibited from submitting an application for insolvency proceedings of a legal person if any of the characteristics of the insolvency listed in Section 57, Paragraph one, Clauses 1, 2, 3 or 4 of the Insolvency Law is in place.
Such characteristics are, for example:
A court, during the emergency period and six months after the end of it, following a substantiated application by the debtor, will be able to decide on the transfer of the deadline of the payment to the creditor included in the rescue plan during the insolvency proceedings, thus extending the term of the procedure for extinguishing the liabilities.
The rights to participate and vote in creditors' meetings remotely using electronic means of communication, as well as to vote in writing are introduced. Time limit for the implementation of the legal protection process has been extended from 2 years to 4 years. In cases where the period for the implementation of the legal protection process has already been extended previously and because of COVID-19 crisis, and the debtor can not fulfill the measures of the plan, the period for the implementation may be extended by one year, if the creditors agree to it.
No information up to date.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
No special involvement to report.
As far as we know social partners participate in discussions on measures for the prevention and suppression the spread of COVID-19 and on crisis impact on economy. However specific opinions of social partners are not published.
Eurofound (2020), Measures regarding insolvency and legal protection processes, measure LV-2020-14/651 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2020-14_651.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.