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-2021-40/2136 – measures in Latvia
|Country||Latvia , applies nationwide|
|Time period||Temporary, 01 October 2021 – 31 January 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Kriss Karnitis (EPC) and Eurofound|
|Measure added||10 January 2022 (updated 26 May 2022)|
Following a surge in COVID-19 infections, the Latvian Government declared a 3-month long state of emergency on 9 October 2021, starting from 11 October 2021. Later, on 21 October, the Government introduced a four-week period of even more strict restrictions to significantly slow down the spread of COVID-19. To help entrepreneurs overcome this phase of the crisis, the government introduced several support measures.
The grant for working capital flow is based on the previously developed support measure Grant for working capital flow .
On 7 December 2021, the government amended regulation No. 676 “On support to companies affected by the COVID-19 crisis to ensure the flow of working capital”. The amendments were agreed with the European Commission and entered into force on 17 December 2021.
On 6 January 2022 the state of emergency was extended until 28 February 2022.
To help overcome the third wave of COVID-19, the grant to compensate is available for companies affected by restrictions on economic activity set in the country for October, November, December 2021 and January 2022, that resulted in a decline in turnover:
New companies registered after 1 January 2021 can apply for support if the criterion of a 20% drop in turnover is met, compared to the average turnover in July, August and September 2021.
Only entrepreneurs who carry out economic activities in the sectors specified in the regulations may apply for support for December 2021 and January 2022. The list includes bars, cultural activities, artists' activities, artistic and literary creation and interpretation activities, gambling and betting, and amusement and recreation activities.
The amount of the grant is 30% of the total amount of the gross salary paid by the company (including the employer's mandatory state social insurance contributions) calculated in July, August and September 2021. The maximum support available per company is €250,000 per month. The maximum amount of support available to a group of related companies is €2.3 million.
When applying for support for a wage subsidy and a grant, the wage subsidy support is paid as a priority.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
Peak level social partners’ organisations are normally informed of Government decisions. Regarding COVID-19 measures, social partners participate in working groups and depending on their capacities are involved in consultations and negotiations.
No specific views to report.
This case is sector-specific (only private sector)
|Economic area||Sector (NACE level 2)|
|I - Accommodation And Food Service Activities||I56 Food and beverage service activities|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R92 Gambling and betting activities|
|R93 Sports activities and amusement and recreation activities|
This case is not occupation-specific.
Eurofound (2022), Grant for working capital flow (re-introduced), measure LV-2021-40/2136 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2021-40_2136.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.