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Competitiveness programme (ERDF)

 

Competitiveness Programme

 

ERDF Promotional Programme for Improvement of Competitiveness of Businesses (No X 399/2009)

 

On 17 February, 2009 the Cabinet of Ministers passed Regulations No 164 „Regarding Loans for Raising of Competitiveness of Businesses” that stipulated that Hipotēku banka would have granted LVL 210 mln as loans to the businesses for improvement of competitiveness by December 2013. Whereas the Cabinet Regulations No 238 dated 10 March, 2009 “Regarding Activity 2.2.1.4. „Loans for Raising of Business Competitiveness” of the Supplement of the Action Programme “Business and Innovations”” set up the procedure for attraction of ERDF and state funds in the amount of LVL 43 mln to the loans for improvement of competitiveness of businesses.

On 21 April, 2009 Hipotēku banka and Ministry of Economics concluded an agreement on the implementation conditions of the loans for improvement of competitiveness of businesses and procedure to be followed when attracting ERDF co-financing. The agreement stipulates that in line with the EU requirements the Loan Fund be established for disbursement of the loans from ERDF resources. The total financing of the Loan Fund is LVL 58,5 mln, of which ERDF and state co-financing amounts to LVL 43,3 mln and financing of Hipotēku banka – LVL 15,2 mln.

Alongside the public and bank’s financing also the loan resources (with a state guarantee) of the Nordic Investment Bank (NIB) are attracted to the programme.

The Competitiveness Programme grants loans to the businesses registered in Latvia with economically feasible business plans which cannot access the financing of the credit institutions due to increased risks they present.

Hipotēku banka passes a decision on granting of the loan on the basis of the entrepreneur’s business plan and loan application in compliance with principles of the bank’s commercial business.

It is planned that the programme will grant working capital loans and investment loans to 430 entrepreneurs. The total loan amount per one entrepreneur may not exceed LVL 7.5 mln. Mostly the loans are intended for implementation of the projects of the processing businesses and entrepreneurs attracting the financing of the EU Structural Funds’ grant programmes.

To read more about the programme, click here.

 

Programme is co-financed by:

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