G/SCM/N/315/EU/Add.16  
 
24 July 2017  
(17-4058) Page: 1/35 
Committee on Subsidies and Countervailing Measures  Original: Engl ish 
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to su bsidy programmes 
of Latvia . 
 
_______________  
 
 G/SCM/N/315/EU/Add.16  
 
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  LATVIA  
 
 
TABLE OF CONTENTS  
 
1   ON APPLICATION OF TA XES IN FREE PORTS AN D SPECIAL ECONOMIC Z ONES  ...........  4 
2   SUPPORT TO INVESTMENT S FOR DEVELOPMENT IN  THE SPECIALLY 
ASSISTED AREAS  ................................ ................................ ................................ .............  4 
3   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES – AID FOR 
IMPLEMENTATION OF NE W PRODUCTS AND TECHN OLOGIES IN PRODUCTION  ................  5 
4   HIGH VALUE ADDED INV ESTMENT – THIRD AND FOURTH ROU ND ..............................  6 
5   CLUSTERS PROGRAMME  ................................ ................................ ..............................  6 
6   COMPETENCE CENTRES  ................................ ................................ ...............................  7 
7   BUSINESS INCUBATORS  ................................ ................................ ..............................  8 
8   EXTERNAL MARKETING  ................................ ................................ ...............................  9 
9   EXTERNAL MARKETING – STRENGTHENING INTERN ATIONAL 
COMPETITIVENESS OF I NDUSTRIES  ................................ ................................ ................  9 
10   CORPORATE INCOME TAX  RELIEF  ................................ ................................ ............  10 
11   INVESTMENT LOANS FOR  MICRO, SMALL AND MED IUM-SIZED ENTERPRISES 
AND COOPERATIVE PART NERSHIPS WHICH PROVI DE AGRICULTURAL SERV ICES 
FOR RISING DEVELOPME NT ................................ ................................ ...........................  11 
12   MICRO -LOANS PROGRAMME  ................................ ................................ ....................  12 
13   BUSINESS START -UPS PROGRAMME  ................................ ................................ ........  12 
14   DEVELOPMENT OF SEPAR ATE WASTE COLLECTION  SYSTEMS  ................................ .. 13 
15   BUSINESS COMPETITIVE NESS SUPPORT PROGRAM ME ................................ ............  14 
16   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES – AID FOR 
IMPLEMEN TATION OF NEW PRODUC TS AND TECHNOLOGIES IN PRODUCTION - 
2ND ROUND  ................................ ................................ ................................ .....................  15 
17   GUARANTEES TO ENTREP RENEURS AND COOPERAT IVE SOCIETIES OF 
AGRICULTURAL SERVICE S TO IMPROVE COMPETI TIVENESS  ................................ ..........  15 
18   MEZZANINE LOANS  ................................ ................................ ................................ . 16 
19   NEXT GENERATION NETW ORK FOR RURAL AREA  ................................ ....................  17 
20   SUPPORT TO TRAINING FOR EMPLOYED FOR ENH ANCING 
COMPETITIVENESS OF E NTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED 
IN PARTNERSHIP  ................................ ................................ ................................ ...........  18 
21   APPLICATION OF REDUC ED EXCISE TAX RATES TO BIOFUEL AN D FOSSIL 
FUEL AND BIOFUEL MIX TURES WITH HIGH BIOF UEL ADMIXTURE  ................................ . 19 
22   OPEN TENDER "COMPLEX  SOLUTIONS FOR REDUCT ION OF GREENHOUSE 
GAS EMISSIONS"  ................................ ................................ ................................ ...........  19 
23   OPEN CALL FOR PROJEC T APPLICATIONS " SUPPORT TO SCIENCE A ND 
RESEARCH"  ................................ ................................ ................................ ....................  20 
24   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES – AID FOR 
SECURING INDUSTRIAL PROPERTY RIGHTS  ................................ ................................ .. 21 
25   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES - NEW PRODUCT 
AND TECHNOLOGY DEVEL OPMENT IN SMES  ................................ ................................ ... 22 G/SCM/N/315/EU/Add.16  
 
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  26   AID FOR EVALUATIO N OF BREEDING MATERI AL IN ORDER TO INTRO DUCE 
INTEGRATED CROP CULT IVATION TECHNOLOGIES  ................................ ........................  23 
27   AID FOR TECHNOLOGY T RANSFER AND VENTURE CAPITAL SECTORS  ......................  23 
28   MICROLOANS  ................................ ................................ ................................ ..........  24 
29   SHORT -TERM EXPORT CREDIT I NSURANCE  ................................ .............................  25 
30   OPEN TENDER "REDUCTI ON OF GREENHOUSE  GAS EMISSIONS IN 
TRANSPORT SECTOR – SUPPORT FOR INTRODUC TION OF ELECTRICAL V EHICLES 
AND THEIR CHARGING I NFRASTRUCTURE"  ................................ ................................ .... 26 
31   NORWEGIAN FINANCIAL MECHANISM 2009 -2014 LV06 PROGRAMME 
"GREEN IN DUSTRY INNOVATION"  ................................ ................................ .................  26 
32   SUPPORT TO DEVELOPME NT OF GREEN JOB CREA TION AND 
ENTREPRENEURSHIP  ................................ ................................ ................................ ..... 27 
33   CONTACT POINTS OF TR ANSFER OF TECHNOLOGIES ................................ ...............  28 
34   SUPPORT TO TRAINING FOR EMPLOYED – FIRST ROUND  ................................ ........  28 
35   SUPPORT FOR NEW PROD UCTS AND TECHNOLOGIE S DEVELOP MENT IN 
COMPETENCE CENTERS  - SECOND ROUND  ................................ ................................ ...... 29 
36   PROMOTION OF EFFECTI VE USE OF ENERGY RES OURCES, REDUCTION OF  
ENERGY CONSUMPTION A ND TRANSFER TO RES I N MANUFACTURING INDU STRY  .........  30 
37   SUPPORT TO ELECTRICI TY PRODUCTION  ................................ ................................  30 
38   PUBLIC INFRASTRUCTUR E FOR BUSINESS  ................................ ..............................  31 
39   REVITALISATION OF DE GRADED TERRITORIES  ................................ ......................  32 
40   SUPPORT FOR PROCESSI NG OF AGRICULTURAL P RODUCTS  ................................ .... 33 
41   SUPPORT FOR BUSINESS CREATION AN D DEVELOPMENT  ................................ ....... 33 
42   SUPPORT FOR INVESTME NTS IN CREATION AND DEVELOPMENT OF 
NON-AGRICULTURAL ACTIVIT IES ................................ ................................ ..................  34 
43   JSC "LATVIJAS FINIER IS" – INVESTMENT AID FOR E NSURING MORE 
ECONOMIC USE OF LATV IAN WOOD RECOURSES A ND FOR CONTRIBUTION TO 
REDUCTION OF UNEMPLO YMENT LEVEL IN SOME REGIONS OF LATVIA  .........................  35 
 
 G/SCM/N/315/EU/Add.16  
 
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  1  ON APPLICATION OF TA XES IN FREE P ORTS AND SPECIAL ECO NOMIC ZONES  
1.  Period covered by the notification  
2015 and 2016  
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 f or the 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 6,742 million under this scheme.  
In 2016, the forecasted amount of the subsidy is EUR 6,742 million.1 
6.  Duration of the subsidy  
2002-2035 
7.  Statistical data permitting an assessment of the trade effects of t he subsidy  
N/A 
2  SUPPORT TO INVESTMENT S FOR DEVELOPMENT IN  THE SPECIALLY ASSIST ED AREAS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The activity is aimed to promote business 
development in specially assisted areas, thereby reducing the unfavorable differences between the 
regions and regional areas, as well as contributing to a balanced national development. Aid is 
awarded for the following initial inv estments: investments in fixed assets and intangible assets. 
The maximum allowable aid intensity ranges from 40 – 55%, depending on the area of project 
implementation.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabinet of Ministers No. 197 Regulation on the operational program 
"Entrepreneurship and Innovation" compliment activity 2.3.2.2. "Support to investments for 
development in the specially assisted areas"" of 24 February 2009 (amendments by the regulation 
                                                
1 Provisional figures as final figures of 2016 are not available yet in cases of tax –related forms of aid 
because according to the  national legislation actual annual figures are obtained in autumn.  G/SCM/N/315/EU/Add.16  
 
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  of Cabinet of Ministers  No. 1387 of 8 December 2009, No. 881 OF 21 September 2010 and 
No. 279 of 31 May of 2013).  
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 su bsidy  
2015 – total grant amount – EUR 4,400 million.2 
In 2016 there are no payments made.  
6. Duration of the subsidy  
2008-2013 
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 
IMPLEMENTATION OF NE W PRODUCTS AND TECHN OLOGIES IN PRODUCTIO N 
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The activity is aimed at su pporting 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 indus try: new equipment acquisition costs, intangible assets 
(patents and licenses, acquisition costs). The maximum allowable funding effort of the project's 
total eligible costs for large – 25%, micro -, small -and medium -sized enterprises – 35%.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabinet of Ministers No. 658 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development of new products and 
technologies" sub -activity 2.1.2.2.2 "De velopment of new products and technologies – aid for 
implementation of new products and technologies in production" of 12th of August 2008" 
(amendments by the Regulations of the Cabinet of Ministers No.  217 of 3 March 2009; the 
Regulations of the Cabinet o f Ministers No.  879 of 21 September 2010 and the Regulations of the 
Cabinet of Ministers No.  540 of 7 August 2012).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Grant.  
                                                
2 Please note that hereinafter where durations of the subsidy ends in 2013th, 2014th and 2015th 
payments are made with n+2 principle.  G/SCM/N/315/EU/Add.16  
 
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  5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 0,400 million.  
In 2016 there are no payments made.  
6.  Duration of the subsidy  
2008–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
4   HIGH VALUE ADDED INVESTMENT – THIRD AND FOURTH ROU ND 
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The activity is aimed to encourage local 
entrepreneurs to invest i n knowledge or technology intensive projects, as well as to attract foreign 
investment in areas with high added value, thus contributing to the transfer of latest technologies 
from abroad.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No.  817 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.1.2.4 "High value added investment" 
of 19 October 2011 (amendments by the Regulation of the Cabinet of Ministers No.  434 of 
26 June 2012 and the Regulation of the Cabinet of Ministers No.  137 of 12 March 2013, No. 455 of 
30 July 2013, No.  1177 of 22 October 2013, No.  106 of 18 February 2014, No.  351 of 30 June 
2014, No.  653 of 21 October 2014).  
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  
2015 – total grant amount – EUR 31,700 million.  
2016 – total grant amount – EUR 8,600 million.  
6.  Duration of the subsidy  
2013–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
5  CLUSTERS PROGRAMME  
1.  Period covered by the notification  
2015 and 2016  G/SCM/N/315/EU/Add.16  
 
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  2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional d evelopment ( de minimis  aid). The purpose of the measure is to 
facilitate the cooperation between sector's unrelated entrepreneurs and institutions of education, 
research and development thus promoting growth of competitiveness, export, innovation and 
devel opment 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 Regul ation of the Cabinet of Ministers No.  788 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.3.2.3."Clusters programme" of 
11 October 2011 (amendments by the Regulation of Cabinet of Ministers No.  41 of 
27 Janua ry 2015).  
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  
2015 – total amount – EUR 1,654 million.  
2016 – total amount – EUR 0,664  million. 
6.  Duration of the subsidy  
2011–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
6   COMPETENCE CENTRES  
1.  Period covered by the notification  
2015 and 2016  
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 developm ent projects.  
Support is given to a Competence center – a legal person established by at least 1 scientific 
institutions and 3 entrepreneurs.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabinet of Ministers No. 361 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement sub - activity 2.1.2.1.1."Competence centers" of 
13 April 2010 (amendments by the Regulation of the Cabinet of Ministers No.  102 of 
1 February  2011 No.  344 of 15 May 2012, No.  702 of 9 Octob er 2012, No.  1277 of 
12 November  2013, No.  639 of 14 October 2014).  G/SCM/N/315/EU/Add.16  
 
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  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  
2015 – total gran t amount – EUR 3,370 million.  
2016 – total grant amount – EUR 2,370 million.  
6.  Duration of the subsidy  
2010-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
7   BUSINESS INCUBATORS  
1.  Period covered by the notifica tion 
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis aid). The purpose of the measure is to 
facilitate the establishment and development of viable and competitive businesses in L atvian 
regions, providing them with the necessary business environment and consultancy services.  
Support is given to small and medium -sized companies incubated in business incubators.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabin et of Ministers No. 835 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.3.2.1 "Business incubators" of 
7 October  2008 (amendments by the Regulation of the Cabinet of Ministers No.  789 of 
11 October  2011,  No. 409 of 15 July 2014, No. 411 of 28 July 2015, No.  608 of 27 October 2015).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Subsidized services.  
5.  The annual amount of the subs idy 
2015 – total grant amount – EUR 8,491 million.  
2016 – total grant amount – EUR 3,999 million.  
6.  Duration of the subsidy  
2008-2014 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A G/SCM/N/315/EU/Add.16  
 
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  8   EXTERNAL MARKETING  
1.  Period cov ered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: The purpose of the de minimis  aid measure is to support foreign markets -related 
activities for entering the foreign markets - external marketing a broad - and measures to promote 
businesses in the international supply chain, promote participation of Latvian businessmen in 
international exhibitions and trade missions.  
Support is given to companies, business associations, regional municipalities, port authorities, 
cooperative societies.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No.  582 Regulation on the operational programme 
"Entrepreneurship and Innovation" complement sub - activity 2.3.1.1."Acquiring extern al markets – 
external marketing" of 17 June 2009  (amendments by the Regulation of the Cabinet of Ministers 
No. 1377 of 30 November 2009, No.  889 of 21 September 2010, No.  109 of 14 February 2012, 
No. 827 of 4 December 2012, No.  239 of 13 of May 2014 and No . 637 of 14 October 2014, 
No. 464 of 11 August 2015, No.  213 of 27 October 2015).  
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  
2015 – total grant amount – EUR 9,167 million.  
2016 – total grant amount – EUR 4,596 million.  
6.  Duration of the subsidy  
2009–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
9   EXTERNAL MARKETING – STRENGTHENING INTER NATIONAL COMPETITIVE NESS OF 
INDUSTRIES  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: The purpose of the de minimis  aid measure is to contribute to strengthening the 
competitivene ss of industries by supporting businesses to enter foreign markets, ensuring 
activities of foreign economic representative offices of Latvia, promoting attraction of foreign direct 
investment and promoting international competitiveness of Latvia as an inte rnational tourism 
destination.  G/SCM/N/315/EU/Add.16  
 
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  Support is given to State agency whose purpose is to promote business development; and State 
agency which has been established to implement the Tourism Development Policy.  
3.  Background and authority for the subsidy  
The Regu lation of the Cabinet of Ministers No.887 ""Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.3.1.1 "Acquiring external markets" 
sub-activity 2.3.1.1.2."Acquiring external markets – strengthening international competitiveness of 
industries" of 21 September 2010 (amendments by the Regulation of the Cabinet of Ministers 
No. 869 of 15 November 2011, No.  826 of 4 December 2012, No.  280 of 9 June 2014, No.  638 
of 14 October 2014, No.  139 of 8 March 2016).  
Authority f or 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  
2015 – total grant amount – EUR 5,239 million.  
2016 – total grant amount – EUR 2,711 million.  
6.  Duration of the subsidy  
2010-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
10   CORPORATE INCOME TAX  RELIEF  
1.  Period covered by the notification  
2015 and 2016  
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 i s given to enterprises investing at least EUR 4,270 million (from 1 January 2014 
minimum investment amount raised to EUR 10,000 million) in tangible assets related to the 
extension of an existing establishment, diversification of the output of an establish ment into new 
products and services and a fundamental change in the overall production process of an existing 
establishment.  
3.  Background and authority for the subsidy  
Article 172 of the Law on Corporate Income "The tax relief for eligible investment pro ject carried 
out under the initial long -term investments" (adopted on 20 December 2010, amendments on 
15 December 2011, 6 June 2013, 6 November 2013, 4 December 2014, 23 November 2016).  
Authority for the subsidy: State Revenue Service/ Ministry of Economic s. G/SCM/N/315/EU/Add.16  
 
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  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 2015 – 9 projects.  
In 2016 were approved 8 investment projects.  
6.  Duration of the subsidy  
The decisions on ap proval  of investment projects for the application of tax relief would be taken till 
31/12/2020.  
Period of investment project could last till 31/12/2025.  
Duration of the application of tax relief is planned for maximum 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 
11   INVESTMENT LOANS FOR  MICRO, SMALL AND MED IUM-SIZED ENTERPRISES AN D 
COOPERATIVE PARTNERS HIPS WHICH PROVIDE A GRICULTURAL SERV ICES FOR RISING 
DEVELOPMENT  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development ( de minimis  aid). The Regulation is aimed at 
improving access of economic performers registered in Latvia to financing thus promoting 
economic development in the Republic of Latvia.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 1065 "Regulation on loans for micro, small and 
medium -sized enterprises and cooperative partnerships which provide agricultural services for 
rising development" of 15 September 2009 (amendments by the Regulations of the Cabinet of 
Ministers No.  949 of 5 October 2010, No.184 of 13 March 2012, No.  1434 of 10 Dec ember 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).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4.  Form of the subsidy  
Soft loan.  
5.  The annual am ount of the subsidy  
2015 – total soft loan amount – EUR 0,540 million.  
2016 – total soft loan amount – EUR 0,920 million.  
6.  Duration of the subsidy  
2009-2015 G/SCM/N/315/EU/Add.16  
 
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  7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
12   MICRO -LOANS PROGRAMME  
1.  Period covered by the notification  
2015 and 2016  
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 bu siness start -up and development, thus contributing to 
the development of Latvian economy. Loans are given to micro -enterprises.  
3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No.  698 Regulations on micro - loans and  grants within 
the frame of Swiss -Latvian Cooperation Programme of the individual project "Micro -lending 
programme" of 6 September 2011 (amendments by Regulation of Cabinet of Ministers No.  1403 of 
10 December 2013,  No. 337 of 17 June 2014, No.  361 of 30 J une 2015).  
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  
2015 – total soft loan amount – EUR 0,610 million.  
2016 – total soft loan amount – EUR 0,988 million.  
6.  Duration of the subsidy  
2009–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
13   BUSINESS START -UPS PROGRAMME  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the s ubsidy 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 to newly established enterprises and private persons planning to start commercial 
activity.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No.  293 Regulations on the operational programme 
"Human R esources and Employment" complement activity 1.3.1.2". Support for self -employment 
and business start -ups" of 31 March 2009 (amendments by the Regulations of the Cabinet No.  754 
of Ministers of 7 July 2009, No.1403 of 8 December 2009, No.  998 of 26 October  2010, No.  363 of 
10 May 2011, No.  360 of 2 July 2013, No.  1431 of 10  December 2013, No.227 of 29 April 2014, 
No. 750 of 9 December 2014).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4.  Form of the subsidy  
Soft lo an. 
5.  The annual amount of the subsidy  
2015 – total soft loan amount – EUR 0,360 million.  
In 2016 there are no payments made.  
6.  Duration of the subsidy  
2009–2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
14  DEVE LOPMENT OF SEPARATE WASTE COLLECTION SYS TEMS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective and/or purpose of the subsidy  
Policy objective: Aid for regional development. The regional aid scheme supports investment 
projects aimed at the development of separate waste collection systems in the whole territory of 
Latvia. The scheme is expected to increase the efficiency of waste management in Latvia, as well 
as to increase employment and social well -being throughout the whole country.  The scheme is 
open to all companies which operate in the waste management sector. More specifically, according 
to the regulation, the beneficiaries of the scheme are undertakings, irrespective of their size, which 
have concluded an agreement with a munici pality on rendering waste management services 
(waste collection, sorting, transportation) in the administrative territory of the municipality or that 
have concluded an agreement with a service beneficiary on hazardous waste management.  
3.  Background and a uthority for the subsidy  
The Regulations of the Cabinet of Minister s of 15 December 2009 No. 1487 Regulations on the 
Supplement Activity 3.5.1.2.3 "Development of a separate waste collection system" of the 
Operational Programme "Infrastructure and Services ".  
Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development.  
4.  Form of the subsidy  
Direct grant.  G/SCM/N/315/EU/Add.16  
 
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  5. To whom and how the subsidy is provided   
The subsidy is provided to producers in accordance with the results of a n open call of projects.  
6.  The annual amount of the subsidy  
In 2015, the total amount of Direct grant amounted to EUR 4,652 million.  
In 2016, the total amount of Direct grant amounted to EUR 0,490 million.  
(Measure is co -financed solely from the Europea n Union Cohesion Fund. No resources from the 
state budget or municipal budget involved).  
7.  Duration of the subsidy  
2009-2014 
8.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
15   BUSINESS COMPETITIVE NESS SUPPORT PROGRAM ME  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The aid programme related to improvement of 
business competitiveness is aimed to provide support to small and medium -sized enterprises 
ensuring access to finance to improve competitiveness of enterprises.  
3.  Background and authority for the subsidy  
The Cabinet of Ministers Order of 22 May 2008 No. 275 "On business competitiveness support 
programme" (new  regulation: The Regulations of the Cabinet of Ministers of 17 February 2009 
No. 164 "Regulations on loans for improving competitiveness of enterprises", amendments by the 
Regulations of the Cabinet of Ministers No.  659 of 20 July 2010, No.  246 of 7 May 20 13, No.  1432 
of 10 December 2013, No.  374 of 1 July 2014, No.  787 of 16 December 2014, No.  702 of 
8 December  2015).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum" . 
4.  Form of the subsidy  
Soft loan.  
5.  The annual amou nt of the subsidy  
2015 - loans issued – EUR 6,801  million.  
2016 – loans issued – EUR 0,416 million.  
6.  Duration of the subsidy  
2009-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A G/SCM/N/315/EU/Add.16  
 
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  16  DEVELOPMENT OF NEW P RODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NE W PRODUCTS AND TECHNOLOGIES IN PRODUCTION - 
2ND ROUND   
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional development. The activity is aimed to support 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 techn ologies in the industry: new equipment acquisition costs, intangible assets 
(patents and licenses, acquisition costs). The maximum allowable funding effort of the project's 
total eligible costs for all enterprises is 35%.  
3.  Background and authority for t he subsidy  
The Regulation of th e Cabinet of Ministers No. 888 Regulations on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development of new products and 
technologies" sub -activity 2.1.2.2.2 "Development of new p roducts and technologies – aid for 
implementation of new products and technologies in production" for the second and subsequent 
rounds of project applications selection" of 21 September 2010 (amendments by the Regulations 
of the Cabinet of Ministers No.  62 of 18 January 2011 and No.  541 of 7 August 2012).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 0,400 million.  
In 2016 there are no payments made.  
6.  Duration of the subsidy  
2010-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
17   GUARANTEES TO ENTREP RENEURS AND COOPERAT IVE SOCIETIES OF 
AGRICULTURAL SERV ICES TO IMPROVE COMP ETITIVENESS  
1.  Period covered by the notification  
2015 and 2016  
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 cre dit resources to implement their projects in case their available 
resources are insufficient to get a bank loan.  
Guarantees are given to enterprises and cooperative societies of agricultural services.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the subsidy  
The Regula tion of the Cabinet of Ministers of 26 October 2010 No.  997 "Regulations on guarantees 
to entrepreneurs and cooperative societies of agricultural services to improve competitiveness" 
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).  
Authority for the subsidy: the Minist ry of Economics, Latvian Guarantee agency.  
4.  Form of the subsidy  
Credit guarantees.  
5.  The annual amount of the subsidy  
For credit guarantees the subsidy equivalent is calculated as the difference between the 
safe-harbor premium rate corresponding credi t quality grade and applied premium rate.  
2015 – guaranties issued – EUR 23,600 million.  
2016 - guaranties issued – EUR 12,017 million.  
6.  Duration of the subsidy  
2009-2014 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
18   MEZZANINE LOANS  
1.  Period covered by the notification  
2015 and 2016  
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. Mezzanine loans is a long -term 
financing instrument, subordinated to a loan issued by the 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.  241 "Rules on mezzanine loans for entrepreneurs to 
improve the competitiveness" of 13 May 2014 that replaced Regulation of the Cabinet of Ministers 
No. 613 of 2 August 2011 (amendments by the Regulation of the C abinet of Ministers No.  463 of 
12 August 2014 and No.  40 of 27 January 2015, No.  627 of 03 November 2015, No.  266 of 
03 May 2016).  
Authority for the subsidy: Latvian Guarantee agency.  
4.  Form of the subsidy  
Soft loan.  G/SCM/N/315/EU/Add.16  
 
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  5.  The annual amount of the subsidy  
2015 – loans issued – EUR 4,860 million.  
2016 – loans issued – EUR 3,736  million.  
6.  Duration of the subsidy  
2011-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
19   NEXT GENERATION NETW ORK FOR RURAL AREA  
1.  Period  covered by the notification  
2015 and 2016  
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 benefic iaries are electronic communication 
operators utilising the new network for offering retail services to end users.  
State Aid scheme "Next Generation Network for rural area " (hereafter - 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 generation network (hereafter - NGN) in the near future – three year 
period. Durin g 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 
technology 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 i n rural area and provide possibility for operators deliver NGA for 
governmental (administrative) entities (local governments, centres of rural territories, schools, 
libraries, hospitals etc.).  
The NGN project foresees totally setting up 500 connection poin ts 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 EUR 26,400 million, phase 2 EUR 92,600 million. The planned overall aid 
amount is EUR 101,710 mill ion 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.  Background and authority for the subsidy  
Sustainable Development Strategy of Latvia until 2030; Nation al 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 Operational Programme 
"Infrastructure and services " 3.2.2.3.  Activi ty "Provision of equal access opportunities to electronic 
communications services in the whole territory of the country (development of Broadband 
network) ""; 
Operational programme "Growth and Employment " 2014-2020; Regulation of the Cabinet of 
Ministers No . 664 of 24 November 2015 "Regulations on the implementing rules of the first round G/SCM/N/315/EU/Add.16  
 
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  project applications for the Operational Programme "Growth and Employment " specific objective 
No. 2.1.1. "To improve accessibility of the electronic communication infrastru cture in rural areas "". 
Authority for the subsidy: Ministry of Transport of the Republic of Latvia.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 - total grant amount - EUR 8,310 million (from ERDF, aid intensity 87,18%).  
2016 - total grant amount - EUR 0,048 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 
20   SUPPORT TO TRAINING FOR EMPLOYED FOR ENH ANCING COMPET ITIVENESS OF 
ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PART NERSHIP  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Training aid. The activity is aimed to promote of investm ent in human resources 
and direct participation of entrepreneurs and societies (except the society which is a union of 
Latvia's employer organisations, which is authorised to act at national level) in improvement of 
qualification of their staff, thus incre asing work efficiency, promoting development of labour 
market and business, building economic competitiveness.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 328 Regulation on the operational programme 
"Human re sources and employment" complement sub -activity 1.3.1.1.1 "Support to training for 
employed for enhancing competitiveness of enterprises – support to training for employed in 
partnership" for the second and subsequent rounds of project applications selecti on" of 
30 March  2010 (amendments by Regulation of the Cabinet of Ministers No.  166 of 
12 October  2010, No.  786 of 11 October 2011, No.  680 of 02 October 2012, No.  585 of 
13 August  2013, No.  1407 of 10 December, No.  707 of 8 December 2015).  
Authority for t he subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 5,400 million.  
2016 – total grant amount – EUR 0,900 million.  G/SCM/N/315/EU/Add.16  
 
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  6.  Duration of the subsidy  
2010-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
21   APPLICATION OF REDUC ED EXCISE TAX RATES TO BIOFUEL AND FOSSI L FUEL AND 
BIOFUEL MIXTURES WIT H HIGH BIOFUEL ADMIX TURE  
1.  Period cov ered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Environmental aid. The reduced rate of excise tax on biofuel and on the mix of 
biofuel with fossil fuel is calculated and paid by taxpayers consid ering conditions that all criteria 
are made accordingly to the circulation of this product.  
Beneficiaries of measure are entities involved in biofuel production and fuel business (wholesale 
and retail sale).   
3.  Background and authority for the subsidy  
The Law on Excise Duties and Regulations of the Cabinet of Ministers No. 1176 "Procedures for the 
Handling of Fuel Containing Bio -products and Administration of the Relevant Excise Duty", adopted 
21 December 2010.  
Authority for the subsidy is the Ministry of  Economics.  
4.  Form of the subsidy  
The aid is granted as application of reduced excise tax rates for biofuel and fossil fuel and biofuel 
mixtures with high biofuel admixture.  
5.  The annual amount of the subsidy  
2015 – total aid amount – EUR 0,262 million . 
2016 – total aid amount – EUR 0,131 million . 
6.  Duration of the subsidy  
2011-2017 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
22   OPEN TENDER "COMPLEX  SOLUTIONS FOR REDUCT ION OF GREENHOUSE GA S 
EMISSIONS"  
1.  Period  covered by the notification  
2015 and 2016  G/SCM/N/315/EU/Add.16  
 
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  2.  Policy objective and/or purpose of the subsidy  
Policy objective: Environmental aid. The reduction of greenhouse gas emissions by securing the 
transition from the technologies using fossil energy resources to the technologies where renewable 
energy resources are used, by improving the technological equipment of businesses or by 
replacing them with new production technological equipment and by improving the energy 
efficiency of manufacturing buildings.  
3.  Backg round and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 14 August 2012 No. 559 "Regulation of the Open 
Tender "Complex Solutions for Reduction of Greenhouse Gas Emissions" for Projects financed by 
the Climate Change Financial Ins trument".  
Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development.  
4.  Form of the subsidy  
Direct grant.  
5.  To whom and how the subsidy is provided   
The subsidy is provided to producers in accordance with the resul ts of an open call of projects.  
6.  The annual amount of the subsidy  
2015 – total grant amount – EUR 3,560 million related to stage IV and EUR 1,280 million related 
to Stage V.  
In 2016 there are no payments made.  
7.  Duration of the subsidy  
2015 
8.  Statis tical data permitting an assessment of the trade effects of the subsidy  
N/A 
23  OPEN CALL FOR PROJEC T APPLICATIONS " SUPPORT TO SCIENCE A ND RESEARCH"  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Research and development. The objective of the activity is to support practical 
research projects which would promote integration of the science and manufacturing and the 
implementation of the research results in accordance with the priority d irections 
(agrobiotechnology, information sciences, biomedicine and pharmacy, power industry, 
environmental science, energy and environment, public health etc.) of science specified in the 
State.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 7 July 2009 No. 752 "Regulations on the operational 
programme "Entrepreneurship and Innovation" complement activity 2.1.1.1.  "Support to science 
and research" first call for Project Applications".  G/SCM/N/315/EU/Add.16  
 
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  The Regulations of the Cabin et of Ministers of 3 January 2013 No. 14 "Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.1.1.1.  "Support 
to science and research" second and thir d call for Project Applications ". 
Support is provided for imp lementation of research projects in open call for project application.  
Project applicants: Scientific institutions registered in the Scientific Institution Register (a scientific 
institute, an institution of higher education or a scientific institute of an  institution of higher 
education) and entrepreneurs.  
Authority for the subsidy: the Ministry of Education and Science, the State Education Development 
Agency.  
4. Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amou nt – EUR 2,800 million.  
2016 – total grant amount – EUR 0,380 million.  
(Aid granted solely from the European Regional Development Fund)  
6.  Duration of the subsidy  
2009-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
24   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES – AID FOR SECURING 
INDUSTRIAL PROPERTY RIGHTS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Research and development. The goal of the sub -activity is to secure the industrial 
property rights regarding the successfully developed new products (including goods and services) 
or technologies (including technological processes).  
Financing is provided to micro, small and medium sized ent erprises for the registration of industrial 
property rights for the following groups: invention, design sample, topography of semi -conductor 
goods and plan species.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabinet of Ministers No.  834 Regulations on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development of new products and 
technologies" sub -activity 2.1.2.2.1 "Development of new products and technologies" and 
sub-activity 2.1.2.2.3 "Dev elopment of new products and technologies – aid for securing industrial 
property rights" of 7 October 2008 (amendments by the Regulation of the Cabinet of Ministers 
No. 218 of 3 March 2009, No.  103 of 1 February 2011 and No.  837 of 1 November 2011).  
Author ity for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  G/SCM/N/315/EU/Add.16  
 
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  4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
In 2015 and 2016 there were no payments made.  
6.  Duration of the subsidy  
2008-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
25   DEVELOPMENT OF NEW P RODUCTS AND TECHNOLO GIES - NEW PRODUCT AND 
TECHNOLOGY DEVELOPME NT IN SMES   
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/ to whom the subsidy is provided  
Policy objective: Research and development. Within the framework of the sub -activity commercial 
entities may receive financing for the development of new products or technologies. Within the 
framework of the sub -activity pro jects may be executed in a partnership of commercial entities. If 
the project is executed in a partnership, each partner will have to meet the requirements for 
project submitter.  
The goal of the sub -activity is to support the development of new or consider ably improved 
products (including goods and services) or technologies (including technological processes). Within 
the framework of the sub -activity the aid is granted for the development of the following groups of 
new products or technologies:  
(1) industri al research;  
(2) experimental development.  
3.  Background and authority for the subsidy  
The Regulation of th e Cabinet of Ministers No. 790 Regulations on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development o f new products and 
technologies" sub -activity 2.1.2.2.4 "New product and technology development in SMEs"  of 
11 October 2011.  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 0,140 million.  
In 2016 there are no payments made.  G/SCM/N/315/EU/Add.16  
 
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  6.  Duration of the subsidy  
2008-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
26   AID FOR EVALUATION OF  BREEDING MATERIAL IN  ORDER TO INTRODUCE 
INTEGRATED CROP CULT IVATION TECHNOLOGIES  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
The aim of the activity is development of novel products and technologies with a view to improving 
of the quality of agricultural raw materials and a long -term economic stability of agricultural 
enterprises in environmentally friendly farming conditions. Beneficiaries of the measure are 
research institu tions.  
3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 17 December 2013 No. 1524 "The State support to 
agriculture and allocation procedure".  
Authority for the subsidy is the Ministry of Agriculture, the Rural Su pport Service.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 0,273 million.  
2016 – total grant amount – EUR 0,273 million.  
6.  Duration of the subsidy  
2013-2021 
7.  Statistical data permitting an  assessment of the trade effects of the subsidy  
N/A 
27   AID FOR TECHNOLOGY T RANSFER AND VENTURE CAPITAL SECTORS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Risk capital. The regul ation prescribes the provisions for granting aid in the 
technology transfer sector (seed capital fund) and venture capital sector (start -up capital fund and 
venture capital fund, and growth capital funds). The goal of seed capital and start -up capital fund s 
is to provide early stage investments and to develop venture capital sector in Latvia. Risk capital 
funds and growth capital funds contribute to the provision of access to later stage investments and 
to the development of venture capital sector. Within t he framework of start -up capital funds, seed G/SCM/N/315/EU/Add.16  
 
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  capital funds, growth capital and venture capital funds micro, small and medium -sized enterprises 
may receive investments. Soft loans are provided by seed capital fund.  
3.  Background and authority for the subsi dy 
The Regulation of the Cabinet of Ministers No. 983 "Regulation for granting aid in technology 
transfer and venture capital sectors" of 25 November 2008 (amendments by the Regulation of the 
Cabinet of Ministers No.  489 of 21 June 2011, No.382 of 29 May 2 012, No.  1496 of 
17 December  2013, No.  415 of 22 July 2014 and No.792 of 23 December 2014, No.  532 of 15 
September 2015).  
Authority for the subsidy: Investment Fund of European Union and from 2012 it was changed to 
the Latvian Guarantee Agency.  
4.  Form of  the subsidy  
Provision of risk capital.  
5.  The annual amount of the subsidy  
2015 – risk capital investment – EUR 18,110 million.  
2016 – risk capital investment – EUR 18,501 million.  
6.  Duration of the subsidy  
2008-2016 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
28  MICROLOANS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: The regulation prescribes the provisions for granting microloans to mi cro, small 
and medium -sized enterprises to increase their competiveness.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 327 "Regulation for granting microloans for 
improvement of business competition" of 18 June  2013 (amendments by the Regulation of the 
Cabinet of Ministers No.  1396 of 10 December 2013; the Regulation of the Cabinet of Ministers 
No. 335 of 17 June 2014; the Regulation of the Cabinet of Ministers No. 33 27 January 2015).  
Authority for the subsidy:  Investment Fund of European Union and from 2012 it was changed to 
the Latvian Guarantee Agency.  
4.  Form of the subsidy  
Provision of soft loans.  
5.  The annual amount of the subsidy  
2015 – loans issued – EUR 0,397 million . 
In 2016 there are no payments ma de. G/SCM/N/315/EU/Add.16  
 
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  6.  Duration of the subsidy  
2013-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
29  SHORT -TERM EXPORT CREDIT I NSURANCE   
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsid y 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% 
of the deferred payment, but cannot exceed EUR 1,000  million. A guarantee covers losses which 
arise from political and commercial risks of the export transaction. Guarantee is provided only to 
so called non -marketable risk countries in accordance with Communication from the Commission 
to the Member States o n the application of Articles 107 and 108 TFEU to short -term export -credit 
insurance.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 436 "Regulation on short -term export credit 
guarantees" of 12 May 2009 (amendm ents by the Regulation of the Cabinet of Ministers No.  1470 
of 15 December 2009, No.  572 of 29 June 2010, No.164 of 6 March 2012 and No.  81 of 
17 February  2015).  
Authority for the subsidy: the Ministry of Economics, Latvian Guarantee agency.  
4.  Form of th e subsidy  
Export credit risk insurance (financial instrument is not provided as subsidy in any form).  
5.  The annual amount of the subsidy  
2015 – insurances issued – EUR 2,779 million.  
2016 – insurances issued – EUR 2,653 million.  
6.  Duration of the subsi dy 
2009-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A G/SCM/N/315/EU/Add.16  
 
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  30  OPEN TENDER "REDUCTI ON OF GREENHOUSE GAS  EMISSIONS IN TRANSPO RT 
SECTOR – SUPPORT FOR INTRODUC TION OF ELECTRICAL V EHICLES AND THEIR 
CHARGING INFRASTRUCT URE"  
1.  Period covered by the notification  
2015 
2.  Policy objective and/or purpose of the subsidy  
Policy objective: Regional aid and Environmental aid. The objective of the tender is to promote the 
reduction of greenhouse gas emissions by means of supporting t he introduction of new, 
industrially manufactured electrically powered passenger cars and establishment of the 
infrastructure of charging electrical vehicles in Latvia.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers  of 4 February 2014 No. 78 "Regulation of the Open 
Tender "Reduction of Greenhous Gas Emissions in Transport sector – support for Introduction of 
Electrical Vehicles and Their charging Infrastructure" for Projects Financed by the Climate Change 
Financial I nstrument".  
Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development.  
4.  Form of the subsidy  
Direct grant.  
5.  To whom and how the subsidy is provided   
The subsidy is provided to producers in accordance with the res ults of an open call of projects.  
6.  The annual amount of the subsidy  
2015 – total grant amount – EUR 0,110 million.  
In 2016, there was no aid granted.  
7.  Duration of the subsidy  
2015 
8.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
31  NORWEGIAN FINANCIAL MECHANISM 2009 -2014 LV06 PROGRAMME "GREEN 
INDUSTRY INNOVATION"  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Regional aid for entrepreneurship  competitiveness. The aim is to support 
implementation of innovative environmental technologies, services and goods.  
Support is given to companies registered in the Republic of Latvia.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the subsidy  
The Regulations of the Cab inet of Ministers No. 1442 of December 10, 2014 - "Norwegian financial 
instrument 2009 -2014 "Green Industry Innovation" Open call implementation arrangements".  
Authorities for the subsidy: the Ministry of Economics, the Investment and Development Agency of  
Latvia.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 – total grant amount – EUR 1,700 million.  
2016 – total grant amount – EUR 4,100 million.  
6.  Duration of the subsidy  
2013-2016 
7.  Statistical data permitting an asses sment of the trade effects of the subsidy  
N/A 
32  SUPPORT TO DEVELOPME NT OF GREEN JOB CREA TION AND ENTREPRENEU RSHIP  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: De minimis  aid for e ntrepreneurship competitiveness. The purpose of the 
measure is to facilitate the establishment and development of viable and competitive businesses in 
Latvian in green technology field, providing them with the necessary business environment and 
consultancy  services. Support is given to small and medium -sized companies incubated at Green 
Technology Incubator.  
3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No. 181 of 2 April 2013 - "Norwegian financial 
instrument 2009 -2014 "Green Industry Innovation" implementation arrangements".  
Authorities of the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4.  Form of the subsidy  
Subsidized services and direct grant.  
5.  The annual amount of t he subsidy  
2015 – total grant amount – EUR 0,870 million.  
2016 – total grant amount – EUR 1,400 million.  
6.  Duration of the subsidy  
2013-2016 G/SCM/N/315/EU/Add.16  
 
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  7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
33  CONTACT POINTS OF TR ANSFER OF TECHNOLOGIES  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for scientific institute or university department that supports and promotes 
knowledge and technology transfer a ctivities and is responsible for external relations 
establishment and maintenance (also with the private sector), providing information about the 
organization's research activities and experience. Activities aim is to systematically identify 
existing and n ecessary research competence in higher education institutions and institutes to 
develop them.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 129 Regulation on the operational programme 
"Entrepreneurship and Inno vation" complement sub - activity 2.1.2.1.2.  "Contact Points of Transfer 
of Technologies" of 26 February 2008 (amendments by the Regulation of the Cabinet of Ministers 
No. 3 of 5 January  2010, No.  101 of 1 February 2011, No.  827 of 19 October 2011).  
Authori ty 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  
2015 – total grant amount – EUR 0,064 million.  
In 2016 there are no payments made.  
6.  Durat ion of the subsidy  
2008-2015 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
34  SUPPORT TO TRAINING FOR EMPLOYED – FIRST ROUND  
1.  Period covered by the notification  
2016 
2.  Policy objective/to whom the subsidy is provid ed 
Policy objective: The aims of the programme are to provide entrepreneurs with the appropriate 
skills amongst the workforce, which would contribute to productivity growth and new or improved 
products and technologies and implementation in production. Fir st round aim to provide support to 
employee 's skills in order to promote technological innovation and labour productivity increases. 
Measure final beneficiaries are small (micro), small, medium and large enterprises.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the su bsidy 
The Regulation of the Cabinet of Ministers No. 617 "Regulation on the operational programme 
"Growth and Employment " the 1.2.2. specific objective aim "Promoting innovation in enterprises " 
1.2.2.1. activity "Support to training for employed" the first  project call implementation rules " of 
27 October 2015 (amendments by the Regulation of the Cabinet of Ministers No.  757 of 
6 December 2016).  
Authority for the subsidy: the Ministry of Economics,  Central Finance and Contracting Agency . 
4.  Form of the subs idy 
Grant.  
5.  The annual amount of the subsidy  
2016 – total grant amount – EUR 0,990 million.  
6.  Duration of the subsidy  
2016-2019 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
35  SUPPORT FOR NEW PROD UCTS AND TECHNOLO GIES DEVELOPMENT IN COMPETENCE 
CENTERS  - SECOND ROUND  
1.  Period covered by the notification  
2016 
2.  Policy objective/to whom the subsidy is provided  
Policy objective: The purpose of the measure is to increasing the competitiveness of enterprises, 
promoti ng the research and industrial sector in the implementation of projects to develop new 
products and technologies and implementing them in production.  
Target group is small (micro), small, medium and large businesses that develop products and 
technologies for smart specialization areas, as well as research and knowledge transfer 
organizations.  
3.  Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 2 Regulation on the operational programme " Growth 
and Employment " 1.2.1. s pecific support objective "To increase private sector investment in 
R & D" 1.2.1.1. activity "Support for new products and technologies development in competence 
centers " "first, second and fourth project call implementation rules " of 5 January 2016.  
Autho rity for the subsidy: the Ministry of Economics,  Central Finance and Contracting Agency . 
4.  Form of the subsidy  
Grant.  
5.  The annual amount of the subsidy  
2016 – total grant amount – EUR 0,017 million.  G/SCM/N/315/EU/Add.16  
 
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  6.  Duration of the subsidy  
2016-2019 
7.  Statistica l data permitting an assessment of the trade effects of the subsidy  
N/A 
36  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  
2015 and 2016  
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 industry.  
Support will be provided for energy e fficiency 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. Tobacco manufacturing).  
3.  Background and auth ority for the subsidy  
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 an d transfer to RES in manufacturing industry" of 9 
September 2016 ". 
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  
In 2015 and 2016  there are no payments made.  
6.  Duration of the subsidy  
2016-2020 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
37  SUPPORT TO ELECTRICI TY PRODUCTION  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objec tive/to whom the subsidy is provided  
Increase of renewable energy production, energy security and environmental protection climate 
change.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the subsidy  
Several Legal Acts form the legal basis: The Electricity Market Law; Sub sidised Electricity Tax Law; 
Regulations of the Cabinet of Ministers 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 t ariff measures (subsidised electricity tax) limiting state 
support.  
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 e lectricity 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 sources.  
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, s ince 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 will cease on 31 December 2017.  
7.  Statistical  data permitting an assessment of the trade effects of the subsidy  
N/A 
38  PUBLIC INFRASTRUCTUR E FOR BUSINESS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective  and/or purpose of the subsidy  
Policy objective: Aid for regional developme nt. The aim of the specific objective is to increase the 
amount of private investment in the regions investing in business development in accordance with 
the economic specialisation under the development programmes of municipalities and based on 
the needs of small (micro) and medium enterprises without state or municipality capital shares, 
individual undertakings, as well as farms and fisheries.  
3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 13 October 2015 No. 5 93 "Implementation 
Regulations of the Specific objective 3.3.1 "To increase private investment volume in the regions 
by investing in business development in accordance with the municipal development programs for 
certain areas of economic specialisation, ba sed on the needs of local entrepreneurs " of the 
Operational Programme "Growth and Employment "". G/SCM/N/315/EU/Add.16  
 
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  Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development, 
Central Finance and Contracting Agency.  
4.  Form of the subsid y 
Direct grant.  
5.  To whom and how the subsidy is provided   
The subsidy will be provided to municipality, its established institution or corporation of the 
municipality  responsible for development of infrastructure in accordance with results of selection of 
Project submissions within the Project submission selection rounds.  
6.  The annual amount of the subsidy  
In 2015 and in 2016 there were no payments made.  
7.  Duration of the subsidy  
2015-2022 
8.  Statistical data permitting an assessment of the trade ef fects of the subsidy  
N/A 
39  REVITALISATION OF DE GRAD ED TERRITORIES  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective  and/or purpose of the subsidy  
Policy objective: Aid for regional development . The aim of the specific objective is the  revitalisation 
of territories through regeneration of degraded territories according to municipal integrated 
development programmes to ensure environmentally friendly and sustainable development of 
revitalised territories with creation of new jobs. Invest ments shall be placed in degraded industrial 
territories or in degraded territories planned or used for business activities to promote the location 
of new companies in revitalised territories.  
3.  Background and authority for the subsidy  
The Regulations of  the Cabinet of Ministers of 10 November 2015 No. 645 "Implementation 
Regulations of the Specific objective 3.3.1 "Implementation regulations of the Specific 
objective  5.6.2. "Revitalisation of territories through regeneration of degraded territories accor ding 
to municipal integrated development programmes" of the Operational Programme "Growth and 
Employment "". 
Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development, 
Central Finance and Contracting Agency.  
4.  Form o f the subsidy  
Direct grant.  
5.  To whom and how the subsidy is provided   
The subsidy will be provided to municipality, its established institution or corporation of the 
municipality  for regeneration of degraded territories in accordance with results of selection of 
Project submissions within the Project submission selection rounds.  G/SCM/N/315/EU/Add.16  
 
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  6.  The annual amount of the subsidy  
In 2015 and in 2016 there were no payments made.  
7.  Duration of the subsidy  
2015-2022 
8.  Statistical data permitting an assessment of the t rade effects of the subsidy  
N/A 
40  SUPPORT FOR PROCESSI NG OF AGRICULTURAL P RODUCTS  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
The regional aid scheme supports investment projects, which aim at the  activities related to the 
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 th e 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  
2015 – Total grant amount – EUR 9,807 million.  
2016 – Total grant amount – EUR 4,195 million.  
6.  Duration of the subsidy  
2015-2020 
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
41  SUPPORT FOR BUSINESS  CREATION AND DEVELOP MENT  
1.  Period covered by the notification  
2015 
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 n ot related to agriculture, to 
develop alternative income sources and increase in income levels in rural areas.  G/SCM/N/315/EU/Add.16  
 
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  3.  Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 9 February 2010 No. 132 "Procedure for granting the 
national and European Union support in the form of an open project submission tender for the 
measure "Support for business creation and development (including diversification non -agricultural 
activities)".  
Authority for the subsidy is Ministry of Agricultur e, the Rural Support Service.  
4.  Form of the subsidy  
Direct grant.  
5.  The annual amount of the subsidy  
2015 - Total grant amount - EUR 4,066 million.  
In 2016 there were no payments made.  
6.  Duration of the subsidy  
2008 – 2015 
7.  Statistical data permit ting an assessment of the trade effects of the subsidy  
N/A 
42  SUPPORT FOR INVESTME NTS IN CREATION AND DEVELOPMENT OF 
NON-AGRICULTURAL ACTIVIT IES 
1.  Period covered by the notification  
2016 
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 n on-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  
In 2015 there were no payments made.  
2016 - Total grant amount - EUR 4,043 million  
6.  Duration of the subsidy  
2016-2020 G/SCM/N/315/EU/Add.16  
 
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  7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
43  JSC "LATVIJAS FINIERIS " – INVESTMENT AID FOR E NSURING MORE ECONOMI C USE  
OF LATVIAN WOOD RECO URSES AND FOR CONTRI BUTION TO REDUCTION OF 
UNEMPLOYMENT LEVEL I N SOME REGIONS OF LA TVIA  
1.  Period covered by the notification  
2015 and 2016  
2.  Policy objective/to whom the subsidy is provided  
Policy objective: Aid for regional develo pment. Ad hoc aid. Tax relief in respect of investments 
made within the scope of supported investment projects is applicable in the amount of 40 % of the 
total invested amount if enterprises comply with certain conditions, for example, total amount of 
investments made should exceed LVL 10 million and the period of investment should not exceed 
3 years. The tax allowance is to be applied starting from the taxation period when the project is 
completed and, depending on the generated income, it will have to be fully utilized in 10 taxation 
periods.  
3.  Background and authority for the subsidy  
Law On Enterprise Income Tax, Article 17.  
Authority for the subsidy: the Ministry of Economics  
4.  Form of the subsidy  
Tax relief . 
5.  The annual amount of the subsidy  
2015 - Tax relief  amount - EUR 2,376 million . 
2016 - The forecasted amount of the subsidy - EUR 2,376 million . 
6.  Duration of the subsidy  
2004 – 2007 period of investment project; 2007 – 2016 duration of the subsidy in the form of tax 
relief is planned for 10  years, starting from 2007.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy  
N/A 
 
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