WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.15 
23 December 2009 
 
 (09-6558) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Latvia.  
 
_______________ 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.15 
Page 2  
 
  LATVIA  
 
TABLE OF CONTENTS 
 
 
Page 
 
I. AID SCHEME OF LOAN GUARANTEES OF LATVIAN GUARANTEE 
AGENCY ......................................................................................................................... ..........4  
II. AID TO LTD "EKOBRIKETES" - UTILIZATION OF LOCAL BIOMASS 
FOR PRODUCTION OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA..............5  
III. APPLICATION OF TAXES IN FREE PORTS AND SPECIAL ECONOMIC 
ZONES.......................................................................................................................... .............5  
IV. BUSINESS COMPETITIVENE SS SUPPORT PROGRAMME .........................................6  
V. CREDITING OF SME S DEVELOPMENT ...........................................................................7  
VI. CREDITING OF SME S DEVELOPMENT (SECOND STAGE) ........................................8  
VII. DEVELOPMENT OF COMMERCIAL ACTIVITY IN SPECIAL ASSISTED 
REGIONS ........................................................................................................................ ..........9  
VIII.  DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES - AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN 
PRODUCTION ..................................................................................................................... ....9 
IX. INDIVIDUAL REGIONAL AID IN F AVOUR OF JSC "OLAINFARM" ......................10  
X. JSC "LATVIJAS FINIERIS" - INVESTMENT AID FOR ENSURING MORE 
ECONOMICAL USE OF LATVIAN WOOD RECOURSES AND FOR CONTRIBUTION IN REDUCTION OF UNEMPLOYMENT LEVEL IN 
SOME REGIONS OF LATVIA ............................................................................................11
 
XI. JSC "LATVIJAS UNIBANKA" - INVESTMENT AID TO DECENTRALIZE 
OF DECISION MAKING PROCEDURES AND OPERATIONS IN THE BANK, ACCORDINGLY CONTRIBUTI NG TO THE DEVELOPMENT OF 
THE REGIONS OUTSIDE THE CAPITAL AND DIMINISHING 
SOCIO-ECONOMICAL DIFFERENCES BETWEEN DIFFERENT 
TERRITORIES OF LATVIA................................................................................................12
 
XII. LOANS (MICROCREDIT INCLUDED) FOR ESTABLISHING COMMERCE...........13  
XIII.  MARKET-ORIENTED RESEARCH PROGRAMME ......................................................13  
XIV.  SUPPORT FOR BUSINESS CREAT ION AND DEVELOPMENT..................................14  
XV. SUPPORT TO THE CONSULTANCY SERVICES AND THE 
PARTICIPATION OF THE COMMERCIAL COMPANIES IN 
INTERNATIONAL EXHIBITION S AND TRADE MISSIONS .......................................15  
XVI.  SUPPORT FOR FILM PROJECTS AND FILM CULTURE PROJECTS IN 
LATVIA......................................................................................................................... ..........16  
XVII.  SUPPORT TO INVESTMENTS FOR DE VELOPMENT IN THE SPECIALLY 
ASSISTED AREAS................................................................................................................. 16 
XVIII.  SUPPORT TO MODERNIZATION OF THE BUSINESS INFRASTRUCTURE ..........17   G/SCM/N/186/EEC/Add.15 
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XIX.  SUPPORT TO PRODUCTI ON OF BIOFUELS .................................................................18  
XX. SUPPORT TO REORGANIZATION AND DEVELOPMENT OF RURAL 
AREAS.......................................................................................................................... ...........19  
XXI.  SUPPORT TO R&D PROJECTS FINANCED IN THE FRAMEWORK OF 
EUREKA PROGRAMME.....................................................................................................20  
XXII.  SUPPORT FOR TRAINING, RETRAINING AND RAISING OF 
QUALIFICATION OF EMPLOYED...................................................................................20  
XXIII.  SUPPORT TO TRAINING FOR TH E EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES (SUPPORT TO TRAINING FOR 
THE EMPLOYED IN PARTNERSHIP AND SUPPORT TO TRAINING FOR 
THE EMPLOYED FOR ENHANC ING COMPETITIVENESS OF 
ENTERPRISES) SUPPORT TO INDIVIDUALLY ORGANIZED TRAINING BY ENTERPRISES ................................................................................................................2 1
 
 
 
     
 
    
 
     
 
    
 
     
 
Remarks:  
LVL 1 = Є0,7028 G/SCM/N/186/EEC/Add.15 
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I. AID SCHEME OF LOAN GUARANTEES OF LATVIAN GUARANTEE AGENCY 
1. Period covered by the notification
 
  2007 and 2008 
 
2. Policy objective/to whom the subsidy is provided
 
  Latvian Guarantee Agency (LGA) provides th e support to SMEs.  LGA provides the support 
to SMEs.  Guarantees are granted to loans aiming at investments in the company - purchase of fixed 
assets, acquisition and repair of buildings, purchase of  equipment, intangible investment - acquisition 
of patents and technologies, as well as loans to finance working capital - a loan to current assets 
and/or credit facility with the aim to increase the company's competitiveness and promote further 
investment in the company's development.  Perm issible aid intensity for small companies may not 
exceed 15 per cent, for medium-sized enterprises - 7.5 per cent. 
 
 If commercial banks refuse to provide loans to SMEs aimed to the realization of initial 
investment projects because of the too high risk in volved, then the LGA would provide the possibility 
for SMEs to sign guarantee agreements.  The scheme foresees the granting of guarantees for long and 
medium term loans issued to SMEs for i nvestment in tangible and intangible assets. 
 
3. Background and authority for the subsidy
 
  Protocol No.21 of the Board of the Latvian Guarantee Agency dated by 29/05/2003 with several amendments/modifications, last dated by 27/07/2007.  
 Authority for the subsidy is the  Latvian Guarantee Agency. 
 4. Form of the subsidy
 
  Guarantee.  
5. The annual amount of the subsidy
 
  In 2007, the aid element of the guarantees issued by the LGA constituted LVL 0,212 million 
and in 2008 - LVL 1.27 million.  
6. Duration of the subsidy
 
  18 June 2003 - 31 December 2008.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
  G/SCM/N/186/EEC/Add.15 
 Page 5 
 
 
  II. AID TO LTD "EKOBRIKETES" - UTILIZATION OF LOCAL BIOMASS FOR 
PRODUCTION OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA 
1. Period covered by the notification  
  2007 and 2008 
 
2. Policy objective/to whom the subsidy is provided
 
  Ad hoc aid to LTD "Ekobriketes" for the initia l investment project related to extension of 
existing establishment which consists of the buildin g for production unit of briquettes and granules.  
The measure aims at promoting regional developmen t and environmental protec tion.  The notified aid 
for the project in question will be granted thro ugh the European Economic Area Financial Mechanism 
(EEA Financial Mechanism) which is parallel to th e Norwegian Financial Mechanism.  Aid intensity 
is 55.89 per cent of applicable eligible costs.  
3. Background and authority for the subsidy
 
  Regulations of the Cabinet of Minister s of 8 November 2005 No. 852 on the "European 
Economic Area Financial Mechanism's and Norw egian Financial Mechanism's management, 
implementation, monitoring, control and evaluati on system" and Regulations of the Cabinet of 
Ministers of 21 November 2006 No. 963 on the "E uropean Economic Area Financial Mechanism and 
Norwegian Financial Mechanism 'Protection of the Environment' priority open call's negotiations". 
  Authority for the subsidy is the Ministry of Environment.  4. Form of the subsidy
 
 
 Grant.  5. The annual amount of the subsidy
 
  In 2008 there was no aid granted. 
 
6. Duration of the subsidy
 
  2008-2009  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  
III. APPLICATION OF TAXES IN FREE PO RTS AND SPECIAL ECONOMIC ZONES 
1. Period covered by the notification
 
 
 2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
 
 According to the national legislation, only th e enterprises that have signed the agreement with 
the Board of special economic zones and free ports  about the realization of business activities and G/SCM/N/186/EEC/Add.15 
Page 6  
 
  initial investments in the territory  of both special economic zones and free ports, may apply the tax 
rebates.  3. Background and authority for the subsidy
 
 
 Law on "Application of Taxes in Free Ports and Special Economic Zones". 
  Authority for the subsidy is the State Reve nue Service and the relevant municipalities. 
 4. Form of the subsidy
 
 
 Tax relief.  5. The annual amount of the subsidy
 
 
 In 2007, the total amount of the subsidy c onstituted LVL 4.01 million under this scheme.  
In 2006, the forecasted amount of the subsidy is LVL 4,0196 million.1 
 6. Duration of the subsidy
 
  2002-2017 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  IV. BUSINESS COMPETITIVENE SS SUPPORT PROGRAMME 
1. Period covered by the notification
 
  2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
 
 The aid programme related to improvement of business competitiveness is aimed at providing 
support to Latvian small and medium-sized ente rprises, ensuring their access to funding thus 
improving their competitiveness.  
3. Background and authority for the subsidy
 
  The Cabinet of Ministers Order of 22 May 2008 No. 275 on "business competitiveness support programme".   Authority for the subsidy is the  State JSC "Mortgage and Land Bank of Latvia". 
 
4. Form of the subsidy
 
  Soft loan.  
                                                     
 
1 Provisional figures as final figures of 2008 are not yet available in cases of tax-related forms of aid 
because due to the national legislation the ac tual annual figures are obtained in autumn.  G/SCM/N/186/EEC/Add.15 
 Page 7 
 
 
  5. The annual amount budgeted for the subsidy  
  In 2008 the aid element of soft loan issued  by the State JSC "Mortgage and Land Bank of 
Latvia" constituted LVL 0,783 million.  
6. Duration of the subsidy
 
  2008-2020  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A  
V. CREDITING OF SME
S DEVELOPMENT 
1. Period covered by the notification  
 
 2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
  The main purpose of this programme is to impr ove the ability of SMEs to receive loans so as 
to promote the modernization and diversificati on of the Latvian economy and to ensure the 
development and improveme nt of SMEs operations. 
  Under this support programme the aid is gi ven to SMEs, which do not have sufficient 
collateral or an adequate credit history to receive lo ans, which are owned by women or located in less 
developed regions of the country.  These SMEs  have a good chance for rapid development as the 
result of business ideas, contacts, knowledge, etc., but with respect to which commercial banks or 
other financial institutions are not interested in providing financing. 
  In 2001, the government in collaboration with  the Latvian Mortgage and Land Bank initiated 
to establish the support programme "Crediting of SM Es development".  Aid, under the auspices of 
this programme, is being granted mainly for initial investments. 
 3. Background and authority for the subsidy
 
  The concept of the project on "Crediting of SMEs Development", accepted by the Cabinet of 
Ministers, 15 November 1999. 
  Authority for the subsidy is the Mortgage and Land Bank of Latvia.  4. Form of the subsidy
 
 
 Soft loan. 
 5. The annual amount of the subsidy
 
  In 2007, and also in 2008, there was no aid granted. 
 
6. Duration of the subsidy
 
  20 July 2001 - 31 December 2010 G/SCM/N/186/EEC/Add.15 
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7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  VI. CREDITING OF SME
S DEVELOPMENT (SECOND STAGE) 
1. Period covered by the notification  
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  As the successful operations of SMEs ensure social stability and promote long-term economic 
growth, an important condition for SME developmen t is the availability of loans.  However, 
commercial banks and other financia l institutions are often uninterested in issuing loans to SMEs 
because many SMEs do not have sufficient collateral or  an adequate credit history to receive loans as 
well as the cost of servicing SME loans is also co mparatively high.  The successful experience with 
the scheme's first stage initiated to continue assistan ce of SMEs thus helping them to develop their 
operations.   Under this support programme the aid is given to  SMEs.  It is the aid scheme managed by the 
Latvian Mortgage and Land Bank which was initiated in collaboration with the government.  Aid 
under the auspices of this programme will be granted only for initial investments.  3. Background and authority for the subsidy
 
 
 Order No. 649 of the Cabinet of Minister s from 7 November 2002 on "Crediting of SMEs 
Development" (second stage).   Authority for the subsidy is the Mortgage and Land Bank of Latvia.  4. Form of the subsidy
 
 
 Soft loan.  5. The annual amount of the subsidy
 
 
 In 2007, and also in 2008, there was no aid granted. 
 6. Duration of the subsidy
 
  2003-2013  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A   G/SCM/N/186/EEC/Add.15 
 Page 9 
 
 
  VII. DEVELOPMENT OF COMMERCIAL ACTIVITY IN SPECIAL ASSISTED 
REGIONS 
1. Period covered by the notification  
  2007 and 2008 
 
2. Policy objective/to whom the subsidy is provided
 
  The scheme is foreseen for supporting SM Es eligible for aid under the scheme by 
co-financing their investment projects in order to  promote the development of specially assisted 
regions.  In the result of the realization of th e scheme, the disparities of development between 
different regions of Latvia will be diminished.  3. Background and authority for the subsidy
 
 
 The Regulations of the Cabinet of Ministers of 11 November 2003 No. 637 "The procedure of 
granting the status of a specially assisted territory",  the Regulations of the Cabinet of Ministers of 
7 February 2006 No. 103 "R egulations on the procedure of subm itting projects and their financing in 
the grant scheme 'Support for investment in business development in specially assisted territories'" 
and Latvia's Development Plan (SPD).  
 Authority for the subsidy is the State Agency of Regional Development. 
 4. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted for the subsidy
 
  In 2007, the total amount of public fina ncing granted under the scheme amounted to 
LVL 2.12 million from the national bud get.  In 2008, the aid amounted to LVL 0.34 million from the 
national budget. 
 
6. Duration of the subsidy
 
  1 January 2004 - 30 June 2007, the fina ncial resources might be used until the 
31 August 2008, according to the EU structural funds procedures. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  
VIII.  DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES - AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN 
PRODUCTION 
1. Period covered by the notification
 
  2007 and 2008 
 G/SCM/N/186/EEC/Add.15 
Page 10  
 
  2. Policy objective/to whom the subsidy is provided
 
  The activity is aimed at supporting deve lopment of new products or technologies in 
manufacturing.  Within the framework of the activit y, financing is provided to the operator's initial 
investment in fixed assets, directly ensuring implementation of new products or technologies in the 
industry:  new equipment acquisition costs, intangibl e assets (patents and licenses, acquisition costs).  
The maximum allowable funding effort of the project' s total eligible costs for large traders is 25 per 
cent, micro-, small- and medium-sized businesses - 35 per cent.  3. Background and authority for the subsidy
 
 
 The Regulations of the Cabinet of Minister s of 12 August 2008 No. 658 "Regulations on the 
Operational Programme "Entrepreneurship an d Innovation" complement activity 2.1.2.2 
"Development of new products and technologies" sub-activity 2.1.2.2.2 "Development of new 
products and technologies - aid for implementation of new products and technologies in production". 
 
 Authority for the subsidy is the Investment and Development Agency of Latvia.  4. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted for the subsidy
 
  In 2008 there was no aid granted, but the aid programme implementation had started. 
 
6. Duration of the subsidy
 
  2008-2013  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
IX. INDIVIDUAL REGIONAL AID IN FAVOUR OF JSC "OLAINFARM" 
1. Period covered by the notification  
 
 2007 and 2008 
 2. Policy objective/to whom the subsidy is provided
 
  Ad hoc aid.  Aid is granted to JSC "Olainfarm",  the aim of which is to support the enterprise 
to modernize the process of production, thus ensuring  the possibility for more than 1,200 workers of 
the Olaine region to maintain their job place. 
 3. Background and authority for the subsidy
 
  Law on "State Budget". 
 
 Authority for the subsidy is the Ministry of Economics.   G/SCM/N/186/EEC/Add.15 
 Page 11 
 
 
  4. Form of the subsidy  
  Prolongation of tax payment debts and write -off of punitive fees related to prolonged tax 
payment debts.  
5. The annual amount of the subsidy
 
  In 2007 and 2008, the aid was granted only in a form of prolongation of tax payment debts.  The total amount of the aid in 2007 was LVL 0,024 million, but in 2008 - LVL 0,019 million.  
6. Duration of the subsidy
 
  2005-2011  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A  
X. JSC "LATVIJAS FINIERIS" - INVESTMENT AID FOR ENSURING MORE 
ECONOMICAL USE OF LATVIAN WOOD RECOURSES AND FOR CONTRIBUTION IN REDUCTION OF UNEMPLOYMENT LEVEL IN SOME 
REGIONS OF LATVIA 
1. Period covered by the notification
 
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  Ad hoc aid.  Tax relief in respect of investments made within the scope of supported investment projects is applicable in the amount of 40 per cent of the total invested amount if 
enterprises conform to the certain conditions, for ex ample, 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 ten taxation periods. 
 3. Background and authority for the subsidy
 
 
 Law on "Enterprise Income Tax" Section 17.1. 
  Authority for the subsidy is the Ministry of Economics.  4. Form of the subsidy
 
 
 Tax relief. 
 5. The annual amount of the subsidy
 
  In 2007, the total amount of the aid grante d constituted LVL 0,878 million.  In 2008, the 
forecasted amount of the subsidy is LVL 0,878 million.
2 
                                                      
2 Provisional figures as final figures of 2008 are not yet available in cases of tax-related forms of aid 
because, due to the national legislation, the ac tual annual figures are obtained in autumn. G/SCM/N/186/EEC/Add.15 
Page 12  
 
   
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 assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
XI. JSC "LATVIJAS UNIBANKA" - INVESTMENT AID TO DECENTRALIZE OF 
DECISION MAKING PROCEDURES AND OPERATIONS IN THE BANK, ACCORDINGLY CONTRIBUTING TO THE DEVELOPMENT OF THE REGIONS 
OUTSIDE THE CAPITAL AND DIMINISHING SOCIO-ECONOMICAL 
DIFFERENCES BETWEEN DIFFERENT TERRITORIES OF LATVIA 
1. Period covered by the notification
 
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  Ad hoc aid.  Tax relief in respect of investments made within the scope of supported investment projects is applicable in the amount of 40 per cent of the total invested amount if 
enterprises comply with the certain conditions, for example, total amount of investments made should 
exceed 10 million LVL and the period of investment s hould not exceed 3 years.  Tax relief is applied 
in the taxation period in which the suppor ted investment project is completed. 
 3. Background and authority for the subsidy
 
  Law on "Enterprise Income Tax", Section 17.1. 
 
 Authority for the subsidy is the Ministry of Economics.  4. Form of the subsidy
 
 
 Tax relief. 
 5. The annual amount of the subsidy
 
  In 2007 and 2008 there was no aid granted.  
6. Duration of the subsidy
 
  2005-2007  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A   G/SCM/N/186/EEC/Add.15 
 Page 13 
 
 
  XII. LOANS (MICROCREDIT INCLUDED) FOR ESTABLISHING COMMERCE 
1. Period covered by the notification  
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  The main purpose of this programme is to impr ove the ability of SMEs to receive loans so as 
to promote the modernization and diversificati on of the Latvian economy and to ensure the 
development and improveme nt of SMEs operations. 
 
 Under this support programme the aid is given to SMEs (which are registered in Commerce 
Register less than five years before receiving the so ft loan), which do not have sufficient collateral or 
an adequate credit history to receive loans.  Aid under the auspices of this programme will be granted 
for initial investments. 
 
3. Background and authority for the subsidy
 
  Latvia's Development Plan (SPD).   Authority for the subsidy is the Mortgage and Land Bank of Latvia. 
 
4. Form of the subsidy
 
  Soft loan.  
5. The annual amount of the subsidy
 
  In 2007, there was no aid granted.  In 2008, the aid equivalent for the soft loans serviced by the Latvian Mortgage and Land Bank was LVL 0,206 million.  6. Duration of the subsidy
 
 
 01 July 2005 - 31 December 2019  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
XIII.  MARKET-ORIENTED RESEARCH PROGRAMME 
 
1. Period covered by the notification  
 
 2007 and 2008 
 2. Policy objective/to whom the subsidy is provided
 
  This framework provides support to small and medium-sized companies for industrial 
research and pre-development projects.  Aid intens ity for industrial research project amounts to 60 per 
cent, while for the pre-development project it is 35 per cent of total eligible costs. 
 G/SCM/N/186/EEC/Add.15 
Page 14  
 
  3. Background and authority for the subsidy
 
  The Regulations of the Cabinet of Minist ers of 5 February 2008 No. 72 "Procedure for 
allocation of funding to market-oriented research projects".  
 Authority for the subsidy is the Ministry of Education and Science. 
 4. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted for the subsidy
 
  In 2008, the aid amounted to LVL 0,144 million from the national budget. 
 
6. Duration of the subsidy
 
  2008-2012  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
XIV.  SUPPORT FOR BUSINESS CREATION AND DEVELOPMENT 
1. Period covered by the notification  
 
 2007 and 2008 
 2. Policy objective/to whom the subsidy is provided
 
  The measure aims at encouraging produc tion of non-agricultural commercial activities 
(business) or employment in the rural area, diversif ying activities that are not related to agriculture, to 
develop alternative income sources and in crease in income levels in rural areas. 
 3. Background and authority for the subsidy
 
  The Regulations of the Cabinet of Minist ers of 10 March 2008 No. 300 "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 a nd development (including diversification 
non-agricultural activities)"".   Authority for the subsidy is the Rural Support Service.  
4. Form of the subsidy
 
  Grant.  5. The annual amount budgeted for the subsidy
 
 
 In 2008, the total amount of direct grant amounted to LVL 0.08 million.   G/SCM/N/186/EEC/Add.15 
 Page 15 
 
 
  6. Duration of the subsidy  
  2008-2013  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A  
XV. SUPPORT TO THE CONSULTANCY SERVICES AND THE PARTICIPATION OF 
THE COMMERCIAL COMPANIES IN INTERNATIONAL EXHIBITIONS AND 
TRADE MISSIONS 
1. Period covered by the notification
 
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  The scheme is foreseen to support consultanc y services to help SMEs eligible for aid under 
the scheme in the following areas:  to attract priv ate capital for innovative business ideas, to make 
new market research, to comply with the obligator y and voluntary quality standa rds etc., as well as to 
support a commercial company's first participation in  a particular international exhibition and trade 
mission. 
 3. Background and authority for the subsidy
 
  The realization of the scheme within the scope of Latvia's Development Plan (SPD), the 
Regulations of the Cabinet of Ministers of 9 May 2 006 No. 381 "Regulations regarding conditions for 
the provision of aid for SME and partners for part icipation in internationa l exhibitions and trade 
missions".   Authority for the subsidy is the Ministry of Economics.  
4. Form of the subsidy
 
  Grant.  5. The annual amount budgeted of the subsidy
 
 
 In 2007, the aid amounted to LVL 0.54 milli on from the national budget.  In 2008, the aid 
amounted to LVL 0.6 million from the national budget.  6. Duration of the subsidy
 
 
 2004-2006, the financial resources might be used until the 31 December 2008 according to 
the EU structural funds procedures.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 G/SCM/N/186/EEC/Add.15 
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  XVI.  SUPPORT FOR FILM PROJECTS AND FILM CULTURE PROJECTS IN LATVIA 
1. Period covered by the notification
 
  2007 and 2008  
2. Policy objective/to whom the subsidy is provided
 
  The scheme aims to support the development,  production and distribu tion of national films 
and international co-productions.  Beneficiaries of  the scheme for all types of support can be legal 
bodies who are film producers or film distributors. 
 
3. Background and authority for the subsidy
 
  The Regulations of the Cabinet of Ministers of 10 June 2008 No. 429 "The procedure for 
granting state budget funding for the film industry proj ects";  Regulations of the film project tender 
organized by the National Film Cent re;  Law on the "State Budget 2008". 
  Authority for the subsidy is the National Film Centre of Latvia.  4. Form of the subsidy
 
 
 Grant. 
 5. The annual amount of the subsidy
 
  In 2008, the amount of the subsidy was LVL 0,502 million. 
 
6. Duration of the subsidy
 
  2008-2013  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A  
XVII.  SUPPORT TO INVESTMENTS FOR DE VELOPMENT IN THE SPECIALLY 
ASSISTED AREAS 
1. Period covered by the notification
 
  2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
 
 The activity is aimed at promoting business de velopment in specially assisted areas, thereby 
reducing the unfavourable differences between the re gions and regional areas, as well as contributing 
to a balanced national development.  Aid is awarded for the following initial investments:  
investments in fixed assets and intangible assets.  The maximum allowable aid intensity ranges from 
40-50 per cent, depending on the area of project implementation. 
  G/SCM/N/186/EEC/Add.15 
 Page 17 
 
 
  3. Background and authority for the subsidy  
  The Regulations of the Cabinet of Minist ers of 20 November 2007 No. 798 "Operational 
programme "Entrepreneurship and Innovation" comple ment activity "Co-financing to investments in 
micro and small-sized enterprises operating in the specially assisted areas" implementation procedure" 
(no longer in force) and the Cabinet of Ministers Regulations of 24 February 2009 No. 197 
"Regulations on the operational programme "Entrepr eneurship and Innovation" complement activity 
2.3.2.2 "Co-financing to investments in micro a nd small-sized enterprises operating in the specially 
assisted areas" (in force from 14.03.2009), replacing the Regulations No. 798.  
 Authority for the subsidy is the Investment and Development Agency of Latvia. 
 4. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted of the subsidy
 
  In 2008 there was no aid granted, but the programme implementation has been started. 
 6. Duration of the subsidy
 
 
 2008-2013  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
XVIII.  SUPPORT TO MODERNIZATION OF THE BUSINESS INFRASTRUCTURE 
1. Period covered by the notification  
  2007 and 2008 
 
2. Policy objective/to whom the subsidy is provided
 
  Aid is foreseen for the invest ments of the enterprises eligible  for aid under the scheme with a 
goal to modernize business infrastructure throughout the territory of Latvia.  Under the scheme the 
following sub-measures will be realized:  support to i nvestment in private infrastructure in access to 
public networks, support to private infrastructur e modernization to bring it in line with the 
EU standards and support to shared private infrastructure development. 
 3. Background and authority for the subsidy
 
 
 Realization of the scheme within the scope of Latvia's Development Plan (SPD), the 
Regulations of the Cabinet of Ministers of 24 January 2006 No. 79 "Regulations on grant scheme 
"support to modernization of the business infr astructure"" (was in force until 01.01.2009.). 
  Authority for the subsidy is the  Ministry of Economics. 
 
4. Form of the subsidy
 
   Grant. G/SCM/N/186/EEC/Add.15 
Page 18  
 
   
5. The annual amount budgeted of the subsidy
 
  In 2007, the total amount of financing fro m the national budget granted under the scheme 
amounted LVL 12.14 million and in 2008 - LVL 11.46 million. 
 
6. Duration of the subsidy
 
  2004-2006, the financial recourses might be used until the 31 December 2008 according to the EU structural funds procedures. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  XIX.  SUPPORT TO PRODUCTION OF BIOFUELS 
1. Period covered by the notification
 
  2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
 
 The beneficiaries of the measure are manufacturers of biofuel of any size.  The number of beneficiaries of direct grant is less than 10.   The reduced rate of excise tax on biofuel and on the mix of biofuel with fossil fuel is 
calculated and paid by the taxpayers, considering co nditions, that all criteria are made accordingly to 
the circulation of this product, which are n ecessary to ensure the payment of import duties. 
  The direct grant is given directly to biofuel producers to whom annual support quota is allocated proportionally to their production capacities.   The overall quota of biofuel subject to the 
direct grant is recalculated annually by the Ministry of Economics. 
 
3. Background and authority for the subsidy
 
  Law "On Biofuel", the Law on "Excise Tax" and the Regulations of the Cabinet of Ministers 
of 13 September 2005 No. 712 "Procedure for allocati on of the national support to production of the 
annual necessary minimum of biofuel and for determin ation of quotas for financial support to biofuel" 
(is no longer in force), the Regulations of the Cabinet of Ministers of 15 April 2008 No. 280 "Regulations on biofuel quota to  be financially supported", replacing the Regulations No. 712 
  Authority for the subsidy is the  Rural Support Service.  
4. Form of the subsidy
 
  Aid is granted in the form of quota-based direct aid and generally applicable excise tax reductions for biofuel.   G/SCM/N/186/EEC/Add.15 
 Page 19 
 
 
  5. The annual amount budgeted for the subsidy  
  In 2007, the total amount of direct grant amounted to LVL 3.7 million and the excise tax 
reduction was LVL 0.38 million.  In 2008, th e total amount of direct grant amounted to 
LVL 6.38 million and the excise tax reduction was LVL 0,488 million. 
 
6. Duration of the subsidy
 
  2006-2010  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  
XX. SUPPORT TO REORGANIZATION AND DEVELOPMENT OF RURAL AREAS 
1. Period covered by the notification
 
  2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
 
 Aid scheme (XS 71/2004) in accordance with  Commission Regulation (EC) No 70/2001 of 
12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises in a form of grants provided for initial investment.  The sectors supported include the development of tourism and craft activ ities, the development agricultural activities with a 
goal to provide alternative income sources and other different services for rural economics and 
population. 
 3. Background and authority for the subsidy
 
  Latvia's Development Plan (SPD) 2004-2006.  
 Authority for the subsidy is the Rural Support Service. 
 4. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted for the subsidy
 
  In 2007, the aid amounted to LVL 1.5 milli on from the national budget.  In 2008, the aid 
amounted to LVL 0.9 million from the national budget.  
6. Duration of the subsidy
 
  2004-2006, financial resources might be used un til 31/08/2008 according to the EU structural 
funds procedures.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  G/SCM/N/186/EEC/Add.15 
Page 20  
 
  XXI.  SUPPORT TO R&D PROJECTS FINANCE D IN THE FRAMEWORK OF EUREKA 
PROGRAMME 
1. Period covered by the notification
 
  2007 and 2008 
 
2. Policy objective/to whom the subsidy is provided
 
  The scheme is foreseen for supporting SM Es eligible for aid under the scheme by 
co-financing their projects in order to promote investments in R&D activities, such as industrial 
research, experimental developmen t and technical feasibility studies. 
 3. Background and authority for the subsidy
 
  The Regulations of the Cabinet of Minist ers of 13 June 2006 No. 479 "Regulations on 
granting aid to projects within  the framework of EUREKA programme" (was in force until 
13.10.2007) and the Regulations of the Cabinet of Ministers of 9 October 2007 No. 678 "Procedure 
for granting state aid to R&D projects financed  within the framework of EUREKA programme", 
replacing the Regulations No. 479.   Authority for the subsidy is the Ministry of Education and Science. 
 
4. Form of the subsidy
 
  Grant.  
5. The annual amount budgeted for the subsidy
 
  In 2007, the aid amounted to LVL 0.38 million from the national budget.  In 2008, the aid amounted to LVL 0,345 million from the national budget.  6. Duration of the subsidy
 
 
 2006-2011  7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N/A 
 
XXII.  SUPPORT FOR TRAINING, RETRAINING AND RAISING OF QUALIFICATION 
OF EMPLOYED 
1. Period covered by the notification  
 
 2007 and 2008 
 2. Policy objective/to whom the subsidy is provided
 
  As there is a low efficiency of work and limit ed usage of labour force, lack of knowledge and 
professional abilities in Latvia, there is a necessity  for the training aid scheme according to which 
enterprises will receive a special assistance and motivation for impr ovement of skills and working  G/SCM/N/186/EEC/Add.15 
 Page 21 
 
 
  quality of employees.  The scheme foresees aid to companies eligible for aid under the scheme for 
both types of training activities - general and specific training.  3. Background and authority for the subsidy
 
 
 Latvia's Development Plan (2004-2006), the Regulations of the Cabinet of Ministers of 
7 February 2006 No. 114 "Regula tions regarding conditions for th e provision of aid for commercial 
activities for the state aid programme "support for trai ning, retraining and raising of qualification of 
employed" (was in force until 31.08.2008.)  
 Authority for the subsidy is the Investment and Development Agency of Latvia. 
 3. Form of the subsidy
 
  Grant. 
 
5. The annual amount budgeted of the subsidy
 
  In 2007, the total amount of public fina ncing granted under the scheme amounted to 
LVL 1.37 million from the national budget.  In 2008,  the total amount of public financing granted 
under the scheme amounted to LVL 0.74 million from the national budget. 
 
6. Duration of the subsidy
 
  2004-2006, the financial resources might be used until the 31 December 2008 according to the EU structural funds procedures. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  
XXIII.  SUPPORT TO TRAINING FOR TH E EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES (SUPPORT TO TRAINING FOR THE 
EMPLOYED IN PARTNERSHIP AND SUPPORT TO TRAINING FOR THE EMPLOYED FOR ENHANCING COMP ETITIVENESS OF ENTERPRISES) 
SUPPORT TO INDIVIDUALLY ORGANIZED TRAINING BY ENTERPRISES 
1. Period covered by the notification
 
 
 2007 and 2008  2. Policy objective/to whom the subsidy is provided
 
  The activity is aimed at promoting investment in human resources, as well as direct 
participation of the entrepreneurs in improvement  of labour force qualification, thereby enhancing 
productivity, contributing to the labour market  and business development and raising the 
competitiveness of the economy.  The target group of the activity are persons employed by the 
entrepreneur and employers - entrepreneurs.  Fu nding is granted to general and special training 
organized by an individual or in partnership. 
 G/SCM/N/186/EEC/Add.15 
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  3. Background and authority for the subsidy
 
  The Regulations of the Cabinet of Minister s of 25 March 2008 No. 203 "Regulations on the 
operational programme "human resources and empl oyment" complement s ub-activity 1.3.1.1.1 
"support to training for employed in partnership" and sub-activity 1.3.1.1.4 "support to training for 
employed for enhancing competitiveness of enterpri ses - support to individually organized training by 
enterprises".   Authority for the subsidy is the Ministry of Economics.  
4. Form of the subsidy
 
  Grant.  5. The annual amount budgeted of the subsidy
 
 
 In 2008 there was no aid granted, but ai d programme implementation had started. 
 6. Duration of the subsidy
 
  2008-2013 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A  
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