Refinancing Loans for Farmers
The ALTUM refinancing loan is intended for primary agricultural producers experiencing difficulties in meeting existing credit obligations and requiring support to restore the financial stability of their farm. The loan is available only to economically viable farms.
Who can apply?
- Primary agricultural producers that derive at least 80% of their income from primary agricultural production;
- Businesses facing difficulties in servicing existing loan obligations;
- Farms that can demonstrate long-term viability and an ability to restore financial stability after refinancing.
- To be eligible for a refinancing loan, the company’s financial indicators, based on the financial statements for the most recently completed tax year, must meet all of the following criteria:
- EBITDA is negative, or the net debt-to-EBITDA ratio exceeds 5;
- Debt Service Coverage Ratio (DSCR) is below 1.1;
- Equity is at least 10% of total assets.
- Following the refinancing of the loans, the company must achieve the following indicators:
- Debt Service Coverage Ratio (DSCR) of at least 1.2;
- Adjusted equity ratio of at least 10%;
- Projected net debt-to-EBITDA ratio not exceeding 7.5.
Financing Terms
Minimum loan amount: 100 000 EUR
Maximum loan amount: 1 500 000 EUR but not exceeding the outstanding balance of the refinanced liabilities
Loan maturity: up to 15 years, taking into account the collateral structure
Eligible area: all rural areas of Latvia (excluding 10 largest cities)
What can be refinanced?
- One or several loans from other lenders;
- Outstanding principal, accrued interest, penalty interest and other liabilities related to the refinanced loan;
- Loans from multiple lenders can be consolidated into a single ALTUM loan.
Important conditions:
- New liabilities or new investments cannot be included in the refinancing loan.
- The support can be received only once.
- Only loans originally used for primary agricultural production are eligible for refinancing.
- The loan is granted as de minimis aid subject to the available de minimis balance.
Support under the programme is provided as de minimis aid in accordance with Commission Regulation (EU) No 1408/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agricultural sector.
The programme is implemented in accordance with Cabinet Regulation No. 505 of 25 August 2026 “Aizdevuma piešķiršanas kārtība primārās lauksaimniecības produkcijas ražotājiem kredītsaistību refinansēšanai”.