backgroundLayer 1backgroundLayer 1backgroundLayer 1

History

ALTUM is founded with a purpose to create a single national scale development and finance institution in order to implement various state aid and  development programmes. 

JSC “Development Finance Institution Altum” (hereinafter ALTUM)  was founded on 27 December 2013 as state–owned joint stock company “Development Finance Institution”, acting upon a directive by the Cabinet of Ministers of the Republic of Latvia.

All ALTUM voting shares belong to the Latvian state – shareholders include the Ministry of Finance (40%), the Ministry of Economics (30%), and the Ministry of Agriculture (30%).

The establishment of ALTUM was held in two stages by combining 3 state-owned institutions:

  • During the first stage three state-owned institution’s JSC “Latvian Development Finance Institution Altum”, LLC “Latvian Gurantee Agency” (hereinafter LGA) and JSC “Rural Development Fund” (hereinafter RDF) shares were transferred to JSC “Development Finance Institution”, thereby creating a concern of financial institutions.
  • During the second stage was a reorganization process – JSC “Latvian Development Finance Institution Altum”, LGA, RDF were merged into JSC “Development Finance Institution” and ceased to exist without a liquidation process. This stage was completed on 15 April 2015, thereby creating new unified institution with new  name  JSC “Development Finance Institution Altum”.

The newly created JSC “Development Finance Institution Altum” (ALTUM) took over all of the rights and obligations, including contract obligations with clients and partners of JSC “Latvian Development Finance Institution Altum”, LGA and RDF.

ALTUM continues to implement various state aid programmes and offers financial instruments such as loans, guarantees, capital instruments and additional instruments, such as grants. ALTUM develops new aid programmes and financial instruments in cooperation with policy makers to advance the economy's development of Latvia.

ALTUM currently has 7 branches and 14  consultation centers that provide customer services throughout the territory of Latvia. 

Consolidated Institutions

  • JSC “Latvian Development Finance Institution Altum” (until 1 January 2014 – JSC  “Mortgage and Land Bank of Latvia”)

  • LLC “Latvian Gurantee Agency” (LGA)

  • JSC “Rural Development Fund” (LAF)

JSC “Latvian Development Finance Institution Altum”

Founded on 19 March 1993 as state-owned JSC  “Mortgage and Land Bank of Latvia” based on a directive by the Cabinet of Ministers of the Republic of Latvia. During its entire period of operations under assignment by the government, the institution implemented different state aid and development programmes, providing support for specific categories of businesses and residents.

On 1 November 2011 the Cabinet of Ministers of the Republic of Latvia supported JSC  “Mortgage and Land Bank of Latvia” commercial part sale strategy. On the basis of this decision, JSC  “Mortgage and Land Bank of Latvia” commercial services  provision was incrementally discontinued of until 30 September 2013.

Starting with 1 January 2014, JSC  “Mortgage and Land Bank of Latvia” continued its operations under the name JSC “Latvian Development Finance Institution Altum”, continuing to provide  national support services for clients and implementation  state aid programmes while simultaneously implementing other the government's delegated task.

LLC “Latvian Guarantee Agency” (LGA)

Founded in 1998 with a purpose to ensure support for entrepreneurs in attracting finances in cases where they're not adequately provided for. LGA implemented the following state aid programmes: credit guarantees, mezzanine loans, export credit guarantees, risk capital microloans. 

JSC “Rural Development Fund” (RDF)

Founded in 1994 and its main area of focus was ensuring state aid to rural entrepreneurs in cases where they are insufficiently provided for in credit.

RDF implemented the following programmes: credit guarantees and credit fund loans, as well as in cooperation with JSC “Latvian Development Finance Institution Altum” provided loans for land purchases to be used for agricultural product production.