G/SCM/N/343/EU/Add.16  
18 September 2019 
(19-5994) Page: 1/24 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE A GREEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to subsidy programmes of 
Latvia . 
 
_______________  
 
 G/SCM/N/343/EU/Add.16  
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  LATVIA  
TABLE OF CONTENTS  
1   ON APPLICATION O F TAXES IN FREE PORT S AND SPEC IAL ECONOMIC ZONES  ...........  3 
2   SUPPORT TO INVESTMENT S FOR DEVELOPMENT IN   
THE SPECIALLY ASSIST ED AREAS  ................................ ................................ ....................  3 
3   DEVELOPMENT OF NEW PRODUCTS AND TECHNOL OGIES – AID FOR 
IMPLEMENTATION OF NE W PRODUCTS AND TECHN OLOGIES IN PRODUCTIO N ................  4 
4   CLUSTERS PROGRAM ME (2014. -2020. PLAN NING PERIOD PROGRAMM E) ...................  5 
5   COMPETENCE CENTR ES (2014 -2020 PLANNI NG PERIOD PROGRAMME)  ......................  6 
6   BUSINESS INCUBAT ORS ................................ ................................ ..............................  6 
7   EXTERN AL MARKETING – STREN GTHENING INTERNATION AL 
COMPETITIVENESS OF I NDUSTRIES  ................................ ................................ ................  7 
8   CORPORATE INCOME  TAX RELIEF  ................................ ................................ ................  8 
9   INVESTMENT LOANS  FOR MICRO, SMALL AN D MEDIUM -SIZED ENTER PRISES 
AND COOPERATIVE PART NERSHIPS WHICH PROVI DE AGRICULTURAL SERV ICES 
FOR RISING DEVELOPMENT  ................................ ................................ .............................  9 
10   MICRO -LOANS PRO GRAMME  ................................ ................................ ......................  9 
11   BUSINESS START -UPS PROGRAMME  ................................ ................................ ........  10 
12   GUARANTEES TO ENTRE PRENEURS AND COOPERA TIVE SOCIETIES OF 
AGRICULTURAL SERVICE S TO IMPROVE COMPETI TIVENESS  ................................ ..........  11 
13   PARALLEL (MEZZA NINE) LOANS  ................................ ................................ ..............  11 
14   PORTFOLIO GUARA NTEES  ................................ ................................ .......................  12 
15   NEXT GENERATION  NETWORK FOR RURAL A REA ................................ ....................  13 
16   SUPPORT TO TRAINING  FOR EMPLOYED FOR EN HANCING 
COMPETITIVEN ESS OF ENTERPRISES – SUPPORT TO TRAINING  FOR EMPLOYED 
IN PARTNERSHIP (2014 .-2020. PLANNING PER IOD PROGRAMME)  ................................  14 
17   OPEN CALL FOR P ROJECT APPLICATIONS "APPLIED RESEARCH PRO GRAM"  ...........  15 
18   OPEN CALL FOR P ROJECT APPLICATIONS "POST -DOCTORAL RESEA RCH AID"  ........  16 
19   VENTURE CAPITAL  ................................ ................................ ................................ .. 16 
20   ACCELERATOR FUNDS  ................................ ................................ .............................  17 
21   SHORT -TERM EXPORT C REDIT INSURANCE  ................................ .............................  18 
22   MID-TERM AND LONG -TERM GUARANTEES  ................................ ..............................  18 
23   INNOVATION MOTI VATION PROGRAMME  ................................ ...............................  19 
24   CONTACT POINTS OF TRANSFER OF TECHN OLOGIES ................................ ...............  20 
25   PROMOTION OF EF FECTIVE USE OF ENERG Y RESOURCES, REDUCTI ON OF 
ENERGY CONSUMPTION A ND TRANSFER TO RES I N MANUFACTURING INDU STRY  .........  20 
26   SUPPORT TO ELEC TRICITY PRODUCTION  ................................ ................................  21 
27   SUPPORT FOR PROCESS ING OF AGRICULTURAL PRODUCTS  ................................ .... 22 
28   SUPPORT FOR INV ESTMENTS IN CREATION  AND DEVELOPMENT OF 
NON-AGRICULTURAL ACT IVITIES  ................................ ................................ ..................  23 
29   SUPPORT FOR THE  STRENGTHENING OF LO CAL ECONOMICS  ................................ .. 23 
30   THE LOAN PROGRA MME FOR RURAL ECONOM ICS, AGRICULTURAL AN D 
FISHERIES ECONOMIC O PERATORS  ................................ ................................ ...............  24 G/SCM/N/343/EU/Add.16  
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  1  ON APPLICATION OF TA XES IN FREE PORTS  AND SPECIAL ECONOMI C ZONES  
1. Period covered by the notification  
2015 – 2017. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. According to the national legislation only enterprises 
having signed the agreement with the Board of Special Economic Zones and Free Ports about the 
realization of business activities and initial investments in the territory of both special economic 
zones and free ports, may apply tax rebates.  
3. Background and authority for th e subsidy  
Law on the Application of Taxes in Free Ports and Special Economic Zones.  
Authority for the subsidy: the State Revenue Service and relevant municipalities.  
4. Form of the subsidy  
Tax relief . 
5. The annual amount of the subsidy  
In 2015, the total amount of the subsidy constituted EUR 11,082 million . 
 
In 2016, the total amount of the subsidy constituted EUR 8,159 million . 
 
In 2017, the total amount of the subsidy constituted EUR 10,541 million . 
6. Duration of the subsidy  
2002-2035. 
7. Statistical da ta permitting an assessment of the trade effects of the subsidy  
N/A. 
2  SUPPORT TO INVESTMENT S FOR DEVELOPMENT IN  THE SPECIALLY ASSIS TED AREAS  
1. Period covered by the notification  
2016, 2017 and 2018 . 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The aim of the measure is to promote the expansion 
of manufacturing industry and the development of new economic operators by supporting the 
creation of industrial spaces in regions.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 227 ""Operational programme "Growth and 
Employment" particular specific objective 3 .1.1."To promote the creation and development of SMEs, 
in particular in the manufacturing and RIS3 priority sectors " 3.1.1.5. measure "Support for 
Investment in Establishment or Reconstruction of Production Premises and Infrastructure " of 
12 April 2016 (amendments by the Regulation of the Cabinet of Ministers No. 241 of 3 May 2017). 
Authority for the subsidy: the Ministry of Economics,  the Central Finance and Contracting Agency . G/SCM/N/343/EU/Add.16  
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  4. Form of the subsidy  
Grant.  
5. The annual amount of the subsidy  
2016 – 2018 total grant amount EUR 6,2 million . 
 
6. Duration of the subsidy  
2016-2022. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
3   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES – AID FOR IMPLE MENTATION 
OF NEW PRODUCTS AND TECHNOLOGIES IN PROD UCTION  
1. Period covered by the notification  
2016, 2017, 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The activity is aimed at supporting development of 
new products or technologies in manufacturing. Within the framework of the activity financing is 
provided to operator's initial investment in fixed assets directly ensuring implementation of new 
products or technologies in the industry: new equipment acquisition costs, intangible assets (patents 
and licenses, acquisition costs). The maximum allowable fu nding effort of the project's total eligible 
costs for large – 35%, medium -sized enterprises – 45% and micro, small enterprises – 55%. 
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 293 Regulation on the Operatio nal Programme  
"Growth and Jobs " measure 1.2.1.4. Introduction of new products in production was developed and 
designed with the special purpose to foster the increase in productivity and competitiveness of 
businesses by developing and introducing new produ cts and technologies in production, as well as 
increasing investments of the private sector in R&D&I. The aid provided to experimental production 
facilities within the programme is a significant contribution to the Latvian economy, providing 
companies the possibility to increase their competitiveness in the local and export market. The 
support is granted for the manufacturing or purchasing, as well as installation and testing in real 
production environment of experimental technologies, ensuring that at leas t 20% of the 
experimental technology are unique components and no more than 80% of components or 
equipment of the experimental technology have been chosen from those available in the market. 
During the  first open call (12  July – 12 September 2016) 17 proje cts were approved of total funding 
25,8 million EUR. During the 2nd open call (21  November  – 12 April 2018.) 51 projects were received 
and now the evaluation process is still going on. It is planned to approve approximately 20 projects 
of funding 34,2 million EUR in the 2nd open call. Overall, it is planned to support at least 30 
enterprises for developing new products and technologies till the end of 2022. At the same time, it 
is planned to attract at least 10,5 million EUR private funding for R&D activiti es. 
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Grant.  G/SCM/N/343/EU/Add.16  
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  5. The annual amount of the subsidy  
In 2016 were no payments made.  
In 2017 - EUR 1,2 million . 
In 2018 - EUR 2,7 million . 
6. Duration of the subsidy  
2016-2022. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
4  CLUSTERS PROGRAMME  (2014. -2020. PLANNI NG PERIOD PROGRAMME)  
1. Period covered by the notification  
2017 and 2018 . 
2. Policy object ive/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis aid). The purpose of the measure is to 
facilitate the cooperation between sector's unrelated entrepreneurs and institutions of education, 
research and developmen t thus promoting growth of competitiveness, export, innovation and 
development of new products of industries.  
Support is given to a foundation performing functions of a cluster where at least 20 entrepreneurs 
are involved as well as institutions of science , education, etc.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 205 Operational program "Growth and Employment" 
3.2.1. specific support objective "Increase high -value -added products and services export ratio" 
3.2.1.1. measure "Cluster Programme " implementing rules of the first project selection round.  
Authority for the subsidy: The Ministry of Economics, the Central Finance and Contracting Agency.  
4. Form of the subsidy  
Grant.  
5. The annual amount of the subsidy  
2017 – total amount – EUR 1,228 million.  
2018 – total amount – EUR 1,299 million.  
6. Duration of the subsidy  
2017–2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/343/EU/Add.16  
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  5   COMPETENCE CENTRES  (2014 -2020 PLANNING PERIOD PROGRAMME)  
1. Period covered by the notification  
2017 and 2018 . 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The purpose of the measure is to increase the 
competitiveness of entrepreneurs facilitating cooperation between research and industry with design 
to implement research, new products and technologies development projects.  
Support is given to a Competence centre  – a legal person established by at least five unrelated 
industry entrepreneurs or recognized cooperative societies for agricultural services.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 2 Operational program "Growth and Jobs" 1.2.1. 
specific support objective "Increase  private sector R&D investment" 1.2.1.1. measure "Support for 
development of new products and technologies in competence centres " the first, second and fourth 
project selection rounds implementing rules " of 5 January 2016 (amendments by the regulation of 
the Cabinet of Ministers No. 598 of 3 October 2017, No. 270 of 8 May 2017, No. 2 of 
2 October  2018).Authority for the subsidy: the Ministry of Economics, the Central Finance and 
Contracting Agency.  
4. Form of the subsidy  
Grant.  
5. The annual amount of the s ubsidy  
2017 – total grant amount – EUR 9,608 million.  
2018 – total grant amount – EUR 9,518 million.  
6. Duration of the subsidy  
2016-2021. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
6   BUSINESS INCUBATORS  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis aid). The purpose of the measure is 
provide  support in the development of new, viable and competitive enterprises. Incubators provide 
individuals and enterprises with the working environment, consultations, events and training on 
general business issues, mentor support, as well as grants necessary for starting or developing a 
business.  G/SCM/N/343/EU/Add.16  
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  3. Background and authority for the subsidy  
Regulation on the operational programme "Regional business incubators and Creative Industries 
Incubator " of the Activity 3.1.1.6. "Regional business incubators and the Creative Industries 
Incubator " of the Specific Aid Objective 3.1.1. "Facilitate SME creation and development, particularly 
in the manufacturing industry and RIS3 priority sectors " of the ERDF Operational Program "Growth 
and Employment " of 3 May 2016 (amend ments by the Regulation of the Cabinet of Ministers No.  279 
– 26 January 2018 and 1 February 2019).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Subsidized services.  
5. The an nual amount of the subsidy  
2016 – total grant amount – EUR 514 121 . 
2017 – total grant amount – EUR 1 965 250 . 
2018 – total grant amount – EUR 2 995 403 . 
6. Duration of the subsidy  
2016 – 2023. 
7. Statistical data permitting an assessment of the trade effe cts of the subsidy  
N/A. 
7  EXTERNAL MARKETING – STRENGTHENING INTER NATIONAL COMPETITIVE NESS OF 
INDUSTRIES  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to whom the subsidy is provided  
The programme nurtures competitiveness of Latvian companies and entrepreneurs. Support can be 
provided for the following activities, among others:  
• Participations in nationals and international exhibitions with own stall/booth;  
• Participation in entrepreneurship -related conference s and seminars abroad, if participant 
gives a  presentation about their product or service;  
• Participation in trade mission abroad;  
• Participation in international visits of high government officials of Latvian;  
• Evaluation of production and product compliance . 
 
Consultations with LIAA representatives abroad.  
Support is given to State agency whose purpose is to promote business development and implement 
the Tourism Development Policy.  
3. Background and authority for the subsidy  
The Regulation of the C abinet of Ministers No.678 Operational programme "Growth and Employment" 
particular specific objective 3.2.1."To increase export proportion of high value added products and 
services" 3.2.1.2. measure "Promotion of International Competitiveness" of 1 Decemb er 2015 G/SCM/N/343/EU/Add.16  
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  (amendments by the Regulation of the Cabinet of Ministers No. 801 of 22  December 2015, No. 649 
of 4 October 2016, No. 240 of 3 May 2017, No. 688 of 28  November  2017, No. 497 of 7 August 
2018, No. 676 of 5 November 2018, No. 70 of 12  February  2019).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Grant.  
5. The annual amount of the subsidy  
2016 – 2018 total grant amount EUR 15,72 million.  
6. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
8  CORPORATE INCOME TAX  RELIEF  
1. Period covered by the notification  
2017 – 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The purpose  of the measure is to contribute to an 
attraction of foreign direct investments as well as to the development of new products and 
technologies and introduction of them in the production.  
Support is given to enterprises investing at least EUR 10,000 million  in tangible assets related to the 
extension of an existing establishment, diversification of the output of an establishment into new 
products and services and a fundamental change in the overall production process of an existing 
establishment.  
3. Backgrou nd and authority for the subsidy  
Article 172 of the Law on Corporate Income "The tax relief for eligible investment project carried out 
under the initial long -term investments" (adopted on 20 December 2010, amendments on 
15 December 2011, 6 June 2013, 6 No vember 2013, 4 December 2014, 23 November 2016).  
Authority for the subsidy: State Revenue Service/ Ministry of Economics.  
4. Form of the subsidy  
Tax relief. 
5. The annual amount of the subsidy  
Investment project was approved for the application of tax relief in 2017 – 6 projects.  
In 2018 were approved 8 investment projects.  
6. Duration of the subsidy  
The decisions on approval of investment projects for the application of tax relief were taken until 
31/12/2018. On 1 January , 2018 The Law on Corporate Inc ome Tax took effect. The Law on 
Corporate Income Tax determines that an investment project application might be submitted to the 
Ministry of Economy by 31 December 2017. The investment project applications received by the G/SCM/N/343/EU/Add.16  
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  deadline within a period of 12 mon ths were evaluated and directed to the Government for taking a 
decision regarding the granting of a corporate income tax allowance.  
Period of approved investment project could last until 2023.  
Duration of the application of tax relief is planned for maximu m 16 years starting taxation period 
when the investment project has been implemented.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
9   INVESTMENT LOANS FOR  MICRO, SMALL AND ME DIUM -SIZED ENTERPRIS ES AND 
COOPERATIVE PART NERSHIPS WHICH PROVI DE AGRICULTURAL SERV ICES FOR RISING 
DEVELOPMENT  
1. Period covered by the notification  
2017 and 20 18. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis  aid). The Regulation is to improve access 
to financing by the registered performers of economic activity in Latvia, thereby promoting the 
development of the economy of the Republic of Latvia.  
3. Background and authority for the subsidy  
The Regulation of t he Cabinet of Ministers No. 1065 "Regulations Regarding loans for promoting the 
development of micro, small and medium sized merchants and agricultural service co -operative 
societies" of 15 September 2009 (amendments by the Regulations of the Cabinet of Mi nisters  No. 949 
of 5 October 2010, No.184 of 13 March 2012, No. 1434 of 10 December 2013, No. 416 of 
22 July 2014, No. 772 of 16 December 2014, No. 588 of 13 October 2015, No. 278 of 3 May 2016, 
No. 595 of 10 October 2017).  
Authority for the subsidy: State  JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5. The annual amount of the subsidy  
 Total amount of loan is EUR 202 047 797,11. By 2018, 427 loans were issued for EUR 78 million.  
6. Duration of the subsidy  
2014-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
10   MICRO -LOANS PROGRAMM E 
1. Period covered by the notification  
2016 – 2018. G/SCM/N/343/EU/Add.16  
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  2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis aid). The aim is to increase the possibility 
of micro - financial support to business start -up and development, thus contributing to the 
development of Latvian economy. Loans are given to micro -enterprises.  
3. Background and authorit y for the subsidy  
The Regulations of the Cabinet of Ministers No. 328 Regulations for micro -loans and start -up loans 
of 31 May 2016 (amendments by Regulation of Cabinet of Ministers No. 57 of 1 February 2018, 
No. 249 of 9 May 2018, No. 718 of 26 November 2 018).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5.  The annual amount of the subsidy  
By 2018, 118 micro -loan were issued for EUR 1.5 million.  
6. Duration of the subsidy  
2014-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
11   BUSINESS START -UPS P ROGRAMME  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: The aim of the de minimis aid  programme is to increase economic activity in the 
country, to develop knowledge and skills of business start -up, as well as to provide the necessary 
financial support for business start -up. 
Support is given t o newly established enterprises and private persons planning to start commercial 
activity.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No. 328 Regulations for micro -loans and start -up loans 
of 31 May 2016 (amendments by Regulation of Cabinet of Ministers No. 57 of 1 February 2018, 
No. 249 of 9 May 2018, No. 718 of 26 November 2018). Authority for the subsidy: State JSC "Latvian 
Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5. The annual amount of the subsidy  
By 2018, 405 start -up loans were issued for EUR 9.5 million . G/SCM/N/343/EU/Add.16  
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  6. Duration of the subsidy  
2014-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
12  GUARANTEES TO ENTREP RENEURS AND COOPERAT IVE SOCIETIES OF AGRIC ULTURAL 
SERVICES TO IMPROVE COMPETITIVENESS  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: De minimis aid for regional development. The purpose of the measure is to provide 
companies with credit resources to implement their projects in case their available resources are 
insufficient to get a bank loan.  
Guarantees are given to enterprises and cooperative socie ties of agricultural services.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers of 26 October 2010 No. 997 "Regulations on guarantees 
to entrepreneurs and cooperative societies of agricultural services to improve comp etitiveness" that 
replaced the Regulation of the Cabinet of Ministers of 24 March 2009 No. 269 (amendments by 
Regulation of Cabinet of Ministers No. 283 of 28 May 2013, No. 1518 of 17 December 2013, No. 414 
of 22 July 2014, No. 539 of 9 September 2014, No.  21 of 12 January 2016, No. 344 of 31 May 2016, 
No. 89 of 14 February 2017, No. 248 of 24 April 2018).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Credit guarantees.  
5. The annual amount of t he subsidy  
For credit guarantees the subsidy equivalent is calculated as the difference between the safe harbour  
premium rate corresponding credit quality grade and applied premium rate.  
Till 2018 guaranties issued EUR 78,346 million (427 guaranties) . 
6. Duration of the subsidy  
2014-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
13   PARALLEL (MEZZANINE)  LOANS  
1. Period covered by the notification  
2017 and 20 18. G/SCM/N/343/EU/Add.16  
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  2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The aid programme is aimed to provide Latvian 
entrepreneurs long -term financing in addition to the granted loan. Parallel loans is a long -term 
financing instrument, subordinated to a loan issued by t he commercial bank and with an increased 
risk. 
Support is given to all size enterprises.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 469 "Rules on parallel lending to economic operators 
for improving competiti veness" of 15 July 2016 (amendments by the Regulation of the Cabinet of 
Ministers No. 416 of 8 August 2017 and No. 20 of 9 January 2018).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Mezzanine  loan. 
5. The annual amount of the subsidy  
Till 2018 loans issued EUR 4,336 million (13 loans) . 
6. Duration of the subsidy  
2016-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
14  PORTFOLIO GUARANTEES  
1. Period cover ed by the notification  
2017 – 2018. 
2.  Policy objective/to whom the subsidy is provided  
Policy objective: The objective of the portfolio guarantee is to facilitate access to finance for 
merchants.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 537 "Regulation on Portfolio Guarantees to Foster 
Lending to micro, small and medium enterprises lending " of 5 September 2017 (amendments by the 
Regulation of the Cabinet of Ministers No. 145 of 6 March 2018) . 
4.  Form of the subsidy  
Credit guarantee.  
5.  The annual amount of the subsidy  
By 2018 in total 59 (portfolio) guarantees were issued EUR 3 million . G/SCM/N/343/EU/Add.16  
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  6. Duration of the subsidy  
2014-2020. 
7. Statistical data permitting an assessment of the trade effects of  the subsidy  
N/A. 
15   NEXT GENERATION NETW ORK FOR RURAL AREA  
1. Period covered by the notification  
2017 – 2018. 
2. Policy objective/to whom the subsidy is provided  
The direct recipient of the aid is the wholesale operator of the netw ork, State Joint Stock Company 
"Latvia State Radio and Television Centre ". Indirect beneficiaries are electronic communication 
operators utilizing  the new network for offering retail services to end users.  
State Aid scheme "Next Generation Network for rural area " (hereafte r - NGN project) foresees 
support to development and establishment of the broadband infrastructure to provide wholesale 
broadband services in rural areas of Latvia, which are currently not served and where there are no 
plans for development of next generat ion network (hereafter - NGN) in the near future – three year 
period. During the planned activities optical (fiber) backhaul infrastructure is developed, which allows 
a long period of use before becoming obsolete (20 years) and thus provides a reliable tech nology 
platform for the construction of the next generation access network – "last mile ". 
In 2015  first phase of the NGN Project is completed and 1813 km of optical cable and 177 access 
points were built.  
By 2020 the implementation of N GN project second phase (2016 -2020) will ensure infrastructure for 
future development of NGA in rural area and provide possibility for operators deliver NGA for 
households and governmental (administrative) entities (local governments, centers  of rural 
territories, sc hools, libraries, hospitals etc.).  
The NGN project foresees totally setting up 500 connection points to NGN (approximately 7000 km 
of fiber). The estimated overall costs of rolling out the network are estimated at EUR 119 million . 
Phase 1 thereof require E UR 26,400 million, phase 2 EUR 92,600 million. The planned overall aid 
amount is EUR 101,710 million EUR 23,000 million for phase 1, EUR 78,710 million for phase 2. 
Financial means are obtained from the European Regional Development Fund (ERDF).  
3. Backgro und and authority for the subsidy  
Sustainable Development Strategy of Latvia until 2030; National Strategic Reference Framework 
2007-2013; Operational Programme "Infrastructure and Services " 2007-2013; Regulation of the 
Cabinet of Ministers No.  79 of 24 January 2012 "Regulations for Operat ional Programme 
"Infrastructure and services " 3.2.2.3.  Activity "Provision of equal access opportunities to electronic 
communications services in the whole territory of the country (development of Broadband network) "; 
Operational programme "Growth and Empl oyment " 2014-2020; Regulation of the Cabinet of 
Ministers No. 664 of 24 November 2015 "Regulations on the implementing rules of the first round 
project applications for the Operational Programme "Growth and Employment " specific objective 
No. 2.1.1. "To improve accessibility of the electronic communication infrastructure in rural areas ". 
Authority for the subsidy: Ministry of Transport of the Republic of Latvia.  G/SCM/N/343/EU/Add.16  
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  4. Form of the subsidy  
Direct grant.  
5. The annual amount o f the subsidy  
2017 - total grant amount - EUR 0,322 million (from ERDF, aid intensity 85%).  
 
2018 - total grant amount - EUR 1,687 million (from ERDF, aid intensity 85%).  
6. Duration of the subsidy  
2012-2020. 
7. Statistical data permitting an assessment of  the trade effects of the subsidy  
N/A. 
16   SUPPORT TO TRAINING FOR EMPLOYED FOR ENH ANCING COMPETITIVENE SS OF 
ENTERPRISES – SUPPOR T TO TRAINING FOR EM PLOYED IN PARTNERSHI P (2014. -2020. 
PLANNING PERIOD PROG RAMME)  
1. Period covered by the notification  
2017 and 2018 . 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Training aid. The activity is aimed to promote training of employees in order to 
facilitate innovation adoption into the operation of the businesses for Manuf acturing industry, ICT 
industry, Tourism industry (1.2.2.1. action) and to support ICT skills development for ICT industry, 
non-technological innovations and training to attract investors (1.2.2.3. action).  
3. Background and authority for the subsidy  
The R egulations of the Cabinet of Ministers No. 617 for measure No. 1.2.2. "To facilitate 
implementation of innovations in enterprises " action No. 1.2.2.1. "Technology training " 1st call of 
27 October  2015.  
The Regulations of the Cabinet of Ministers No. 365 fo r measure No. 1.2.2. "To facilitate 
implementation of innovations in enterprises " action No. 1.2.2.3. "Non-technology training and 
training to attract investors " of 14 June 2016.  
Authority for the subsidy: the Ministry of Economics, the Central Financing a nd Contracting Agency 
of Latvia.  
4. Form of the subsidy  
Direct grant.  
5. The annual amount of the subsidy  
1.2.2.1. action:  
2017 – total grant amount – EUR 1,839 million ; 
2018 – total grant amount – EUR 1,631 million.  
 
1.2.2.3. action:  
2017 – total grant amount - 0,264 EUR ; 
2018 – total grant amount – 0,411 EUR . G/SCM/N/343/EU/Add.16  
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  6. Duration of the subsidy  
2016-2022 (1.2.2.1. action) . 
2016-2020 (1.2.2.3. action) . 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
17  OPEN CALL FOR PROJEC T APPLICATIONS " APPLIED RESEARCH PRO GRAM " 
1. Period covered by the notification  
2016-2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Research and development. The objective of the activity is to support research, 
which contributes to the achievement of goals of the Latvian Smart Specialization Strategy, to the 
development of human capital for science and technology and to the creation of new knowledge for 
the improvement of competitiveness of the national economy.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 12 January 2016 No 34 "Regulation for the 
implementation of measure 1.1.1.1 "Applied research program " of Specific Objective 1.1.1 "To 
increase the research and innovative  capacity of scientific institutions of Latvia and their ability to 
attract external funding by investing in human resources and infrastructure " of Operational 
Programme "Growth and Employment ". 
Support is provided for implementation of research projects i n open call for project application, which 
contribute to the implementation of Latvian Smart Specialisation strategy.  
Project applicants: Scientific institutions registered in the Scientific Institution Regi ster and 
entrepreneurs.  
Authority for the subsidy : the Ministry of Education and Science . 
4. Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2017 total public funding amount EUR 14,41 million . 
2018 total public funding amount EUR 14,77  million . 
(2016 total public funding amount EUR 0). 
6. Duration of the subsidy  
2016-2023. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/343/EU/Add.16  
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  18  OPEN CALL FOR PROJEC T APPLICATIONS " POST -DOCTORAL RESEAR CH AID " 
1. Period covered by the notification  
2016-2018. 
2. Policy objective/to whom the subsidy is provided  
Policy  objective: Research and development. The objective of the activity is to  develop the skills of 
new scientists and to increase the scientific capacity, ensuring the possibilities for new scientists to 
start a career in scientific institutions and with enterprises, as well as improvement of research 
competences, renewal of human  resources and increase in the number of qualified specialists.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 19 January 2016 No 50 "Regulations Regarding 
Implementation of Activity 1.1.1.2 "Post -doctoral Resear ch Aid" of the Specific Objective 1.1.1 "To 
increase the research and innovative capacity of scientific institutions of Latvia and the ir ability to 
attract external funding by  investing in human resources and infrastructure" of the Operational 
Programme "G rowth and Employment ". 
Project applicants: Scientific institutions registered in the Scientific Institution Register  and 
entrepreneurs.  
Authority for the subsidy: the Ministry of Education and Science . 
4. Form of the subsidy  
Direct grant.  
5. The annual amo unt of the subsidy  
2016 total public funding amount EUR 0,07 million . 
2017 total public funding amount  EUR 0,45 million . 
2018 total public funding amount EUR 2,74 million . 
6. Duration of the subsidy  
2016-2023. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
19  VENTURE CAPITAL  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Risk capital.  Risk capital and venture capital funds offer long-term equity investment 
for start -ups and innovative enterprises with a high growth potential at early stages of development, 
which traditional financers choose to refrain from financing due to higher attributed risk. Investments 
can be made in the for m of equity or quasi -equity.  G/SCM/N/343/EU/Add.16  
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  3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 518 "Regulations on Seed Capital and Venture Capital 
Funds for the Establishment, Development and Competitiveness of Economic operators " of 
12 April 2016 (amendments by the Regulation of the Cabinet of Ministers No. 7 of 9 January 2018, 
No.90 of 24 April 2018) . 
Authority for the subsidy: Financial intermediaries selected in open public procurement process by 
state JSC "Latvian Development Finance Institution Altum" . 
Provision of risk capital.  
4. The annual amount of the subsidy  
 By 2018 in total 3 companies were issued EUR 1,568 million . 
5. Duration of the subsidy  
2014-2020. 
6. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
20  ACCELERATOR FUNDS  
1. Period covered by the notification  
2018 and 2020 . 
2. Policy objective -to whom the subsidy is provided  
The acceleration programme is allocated to innovative start -up companies for the establishment and 
develo pment of business ideas and products, with the aim of promoting their growth and 
competitiveness, especially with regards to projects with a technological and industrial focus.  
3. Background and authority for th e subsidy  
The Regulation of the Cabinet of Minister No. 226 "Regulations Regarding Acceleration Funds for 
Facilitating the Establishment, Growth and Competitiveness of Performers of Economic Activities " of 
12 April 2016 (amendments by the Regulation of the Cabinet of Minister No. 19 of 9 January 2018 
and No 90 of 24 April 2018).  
Authority for the subsidy: Funding is available from three acceleration funds, selected in a public 
procurement by state JSC  Latvian Development Finance Institution Altum: BuildIt Latvia; 
Commercial Reactor fund; Overkill Ventures . 
4. Form of the subsidy   
Provision of venture capital . 
5. The annual amount of the subsidy  
By 2018 in total 19 companies were issued EUR 1,665 million  In 2016 there are no payments made.  
6. Duration of the subsidy  
2014-2020. G/SCM/N/343/EU/Add.16  
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  7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
21  SHORT -TERM EXPORT CR EDIT INSURANCE  
1. Period covered by the notification  
2016-2019. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: short -term export credit insurance. The purpose of the measure is to provide short -
term export credit guarantee coverage to Latvian exporters. A guarantee covers up to 90% risk 
coverage con cerning political risk, of the total sum of an export transaction. The maximum amount 
of an export credit guarantee or the maximum amount of ALTUM obligations for losses that have 
incurred due to non -payment by one foreign customer is EUR 2 million. An exp ort credit guarantee 
may cover both the buyer 's risk and the risk of the guarantor of the buyer 's obligations – bank or 
buyer 's associated company if having certain doubt about the liquidity of the buyer 's obligator. The 
objective of an export credit guara ntee is to cover the risks of export deals or to serve as a collateral 
for the receipt of financing necessary for export deals, for instance, factoring.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 866 "Regulat ion on short -term export credit 
guarantees to entrepreneurs and cooperative societies of agricultural services"  of 20 December  2016 
(amendments by the Regulation of the Cabinet of Ministers No. 596 of 26  September 2017) . 
Authority for the subsidy: State JS C "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Export credit risk insurance (financial instrument is not provided as subsidy in any form).  
5. The annual amount of the subsidy  
Till 2019 signed 147 contracts in the amount of EUR 10 622 722 . 
6. Duration of the subsidy  
2016-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
22  MID-TERM AND LONG -TERM GUARANTEES  
1. Period covered by the notification  
2017-2018. 
2. Policy objective and/or purpose of the subsidy  
Policy objective: medium and long-term export credit guarantees. The purpose of the measure is to 
provide medium and long-term export credit guarantee coverage to Latvian exporters. A guarantee 
covers up to 95% risk coverage concerni ng commercial risk and up to 100% risk coverage concerning 
political risk. The maximum amount of an export credit is EUR 5 million. The objective of an export 
credit guarantee is to cover the risks of export deals or to serve as a collateral for the receip t of G/SCM/N/343/EU/Add.16  
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  financing necessary for export deals, for instance, factoring. The credit risk period, including the 
production period, exceeds two years.  
3. Background and authority for the subsidy  
Regulation of the Cabinets of Ministers No. 290 "Regulation for the issuance of medium and long -term 
export credit guarantees to economic operators " of 30 May 2017.  
4. Form of the subsidy  
Export credit risk insurance (financial instrument is not provided as subsidy in any form).  
5. The annual amount of the subsidy  
No transactions concluded.  
6. Duration of the subsidy  
2017-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
23  INNOVATION MOTIVATIO N PROGRAMME  
1. Period covered by the notification  
2016 – 2018. 
2. Policy objective/to wh om the subsidy is provided  
Policy objective: Promote understanding of innovation and business, as well as to practically involve 
different societal groups in business activities, and development and further implementation of 
innovative ideas and solutions.  
3. Background and authority for the subsidy  
Regulation of the Cabinet of Ministers No 287 "Implementing regulations for Operational Program 's 
"Growth and Jobs " 1.2.2. Specific Support Objective 's "To promote innovation in enterprises " 
1.2.2.2.  Measure "Innovation motivation program ". 
4. Form of the subsidy  
Non-financial support (soft measures) . 
5. The annual amount of the subsidy  
EUR 0.7 million annually (2016 -2023). Total amount of support available within the programme – 
EUR 5.65 million.  
6. Duration of the subsidy  
2016-2023. G/SCM/N/343/EU/Add.16  
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  7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
24  CONTACT POINTS OF TR ANSFER OF TECHNOLOGI ES 
1. Period covered by the notification  
2016-2018. 
2. Policy objective/to whom the subsidy is p rovided  
Program objectives: provide a contribution to achieve objectives of the Smart Specialization Strategy 
of Latvia; support the development of the competence of the research result commercialization; 
promote commercialization of the research results and to transform the research results into 
successful entrepreneurship; promote innovation activities in SME 's and to provide aid to them 
through the transfer of technologies for the development of new or significantly improved products 
or technolo gies, and promote the establishment of start -up companies in Latvia.  
3. Background and authority for the subsidy  
Regulation of the Cabinet of Ministers No. 692 Regulation for the Implementation of the Activity 
1.2.1.2 "Support for the Improvement of Techno logy Transfer System" of the Specific Objective 
1.2.1 "To increase investments of private sector in R&D" of the Operational Programme "Growth and 
Employment" (25/01/2016).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development  Agency of 
Latvia.  
4. Form of the subsidy  
Grant.  
5. The annual amount of the subsidy  
Total eligible funding EUR 42 million . 
Available funding till 2018 – EUR 20 million  (EUR 17 million  – ERDF; EUR 3 million  – state budget) . 
6. Duration of the subsidy  
2016 – 2022. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
25  PROMOTION OF EFFECTI VE USE OF ENERGY RES OURCES, REDUCTION OF  ENERGY 
CONSUMPTION AND TRANSFER  TO RES IN MANUFACTURING  INDUSTRY  
1. Period covered by the notification  
2016-2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: The goal of the measure is to promote effective use of energy resources, reduction 
of energy consumption and transfer to RES in manufacturing indus try. G/SCM/N/343/EU/Add.16  
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  Support will be provided for energy efficiency measures in industrial buildings as well as for 
improvement and replacement of equipment that is more energy efficient. Financial beneficiaries: 
Manufacturing companies – NACE 2.  red C section (excl. Toba cco manufacturing).  
3. Background and authority for the subsidy  
1) The Regulation of the Cabinet of Ministers No. 590 "Regulations on the operational 
programme's "Growth and employment" 4.1.1. specific support objective "To promote 
effective use of energy resources, reduction of energy consumption and transfer to RES in 
manufacturing industry" of 9 September 2016";  
2) The Regulation of the Cabinet of Ministers No. 38 "Regulations on the operational 
programme's "Growth and employment" 4.1.1. specific support  objective "To promote 
effective use of energy resources, reduction of energy consumption and transfer to RES in 
manufacturing industry" Second Project Application Selection Round " of 27  January  2018";  
Authority for the subsidy: the Ministry of Economics, the Central Finance and Contracting 
Agency.  
4. Form of the subsidy  
Direct grant.  
5. The annual amount of the subsidy  
Until 2019 signed 40 contracts for EUR 10 303 323 (Cohesion Fund).  
6. Duration of the subsidy  
2016-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
26  SUPPORT TO ELECTRICI TY PRODUCTION  
1. Period covered by the notification  
2017 and 201 8. 
2.  Policy objective/to whom the subsidy is provided  
Increase of renewable energy production, energy security and environmental protection climate 
change.  
3. Background and authority for the subsidy  
Several Legal Acts form the legal basis: The Electricity Market Law; Subsidised Electricity Tax Law; 
Regulations of the Cabinet of Minister s of 10 March 2009 No 221 "Regarding Electricity Production 
and Price Determination upon Production of Electricity in Cogeneration "; Regulations of the Cabinet 
of Ministers of 16 March 2010 No. 262 "Regarding the Production of Electricity Using Renewable 
Energy Sources and the Procedures for the Determination of the Price ". 
Authority for the subsidy: the Ministry of Economics.  
4. Form of the subsidy  
Feed-in tariffs, capacity payments, and tariff measures (subsidised electricity tax) limiting state 
support.  G/SCM/N/343/EU/Add.16  
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  5. The annual amount of the subsidy  
2015 – total aid amount – EUR 224,300 million.  
 
2016 – total aid amount – EUR 207,900 million . 
6. Duration of the subsidy  
Rights to produce and sell electricity within the framework of mandatory purchase or guaranteed 
payments is limited to a maximum of 20 years. The current system of mandatory purchase and 
guaranteed payments is in place until 2032 for electricity production in cogeneration and until  2037 
for electricity production from renewable energy sour ces. 
However, since 26  May 2011 no new rights are conferred to sell electricity produced from renewable 
energy sources within the framework of mandatory purchase or guaranteed payments. Similarly, 
since 10  September 2012  no new rights are conferred to sell  electricity produced in cogeneration 
within the framework of mandatory purchase or guaranteed payments.  
Application of the subsidised electricity tax ceased  on 31 December 2017.  
7. Statistical data permitting an assessment of the trade effects of the subs idy 
N/A. 
27  SUPPORT FOR PROCESSI NG OF AGRICULTURAL P RODUCTS  
1. Period covered by the notification  
2017 and 2018 . 
2. Policy objective/to whom the subsidy is provided  
The regional aid scheme supports investment projects, which aim at the activities related to t he 
processing of agricultural products.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 30 September 2014 No. 600 " The procedure for 
granting of the State and European Union support in the form of open project tenders under the 
measure "Investments in physical assets ". 
Authority for the subsidy is the Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. The annual amount of the subsidy  
2017 – Total grant amount – EUR 4,336 million.  
 
2018 – Total grant amount – EUR 1,783 million.  
6. Duration of the subsidy  
2015-2020. 
7. Statistical data permitting an assessment of the trade eff ects of the subsidy  
N/A. G/SCM/N/343/EU/Add.16  
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  28  SUPPORT FOR INVESTME NTS IN CREATION AND DEVELOPMENT OF 
NON-AGRICULTURAL ACTIVIT IES 
1. Period covered by the notification  
2017-2018. 
2. Policy objective/to whom the subsidy is provided  
The measure aims at encouraging production of non -agricultural commercial activities (business) or 
employment in the rural area, diversifying activities that are not related to agriculture, to develop 
alternative income sources and increase in income levels in rural areas.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 24 May 2016 No. 320 " The procedure for granting of 
the State and European Union support under the measure "Support for investments in creation and 
development of non -agricultural activities " in the form of open project application tenders ". 
Authority for the subsidy is Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. The annual amount of the subsidy  
2017 – Total grant amount – EUR 0,443 mi llion. 
 
2018 - Total grant amount - EUR 1,049 million . 
6. Duration of the subsidy  
2016-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
29  SUPPORT FOR THE STRENGTHENING OF LOC AL ECONOMIC S 
1. Period covered by the notification  
2017 and 2018 . 
2. Policy objective/to whom the subsidy is provided  
The measure aim is promote the local development in rural territory, to support the local 
development initiatives which complying with the Rural Development Programme 2014 -2020 and 
included in the community -led local development strategies of local action groups and improving 
situation in rural areas, creating a favourable environment for living, entrepreneurship and 
development of rural territories.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 13 October 2015 No. 590 "The procedure for granting 
of the State and European Union support for rural development under the sub -measure 'Support for 
implementation of operations under community -led local development strategy '". 
Authority for the subsidy is Ministry of Agriculture, the Rural Support Service.  G/SCM/N/343/EU/Add.16  
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  4. Form of the subsidy  
Direct grant.  
5. The annual amount of the subsidy  
2017 - Total grant amount - EUR 0,404 million . 
2018 - Total grant a mount - EUR 0,500 million . 
6. Duration of the subsidy  
2016-2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
30  THE LOAN PROGRAMME F OR RURAL ECONOMICS, AGR ICULTURAL AND FISHER IES 
ECONOMIC OPERATOR S 
1. Period covered b y the notification  
Programme started September , 2018. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: Aid for rural development, agricultural and fisheries operators ( de minimis aid). The 
aim is to promote the involvement of citizens in rural economic  activity and increase the availability 
of financial resources for rural economics, agricultural and fisheries operators.  
3. Background and authority for the subsidy  
The Regulations of t he Cabinet of Ministers of 24 July 2018 No. 446 "Provisions on the loan program 
for rural economic, agricultural and fisheries economic operators ". 
Authority for the subsidy: Ministry of Agriculture, State JSC "Latvian Development Finance Institution 
Altum" . 
4. Form of the subsidy  
Loan. 
5. The annual amount of the subsidy  
2018 – total issued loan amount – EUR 0,543 million . 
6. Duration of the subsidy  
2018–2020. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
 
__________