For more than a month, entrepreneurs may apply for State aid programmes that aim to reduce the economic consequences caused by the Russian military aggression against Ukraine.

The aid programmes are implemented by the joint-stock company Development Finance Institution Altum, AS (ALTUM).

Application for aid is open for viable economic operators that are registered in Latvia and whose activities have suffered as a result of the Russian aggression against Ukraine. Such hardships include drop in demand, cancellation of contracts, reduction in turnover, disturbed supply chains, increase in prices, and limited future investments.

Aid measures in the form of financial instruments will support the further activities of economic operators by ensuring availability of current assets and financing for stabilising the liquidity.
The aid is issued as loan or loan guarantee.

It should be pointed out that an economic operator when considering financing options (including applying for ALTUM guarantee) should first turn to a commercial bank. Only when a commercial bank has issued a refusal is an enterprise eligible for ALTUM loan.

Type of aid:ALTUM loanALTUM loan guarantee for a financing by a credit institution
Purpose:to reduce the economic consequences caused by the Russian military aggression against Ukraine.
Eligibility:economic operators registered in Latvia and representing all categories:·       micro, small and medium-size enterprises (SMEs);·       large enterprises;·       associations and cooperatives;·       agriculture, fishing and aquaculture enterprises.
Total amount of the aid programme:EUR 21.5 millionEUR 12.5 million
Type of financing:·       for current assets;·       for investments. Loan may not be used for the refinancing of other loans or for the repayment of principals, payment of related company debts, debt payments, disbursement of dividends.For the following new financial services offered by a credit institution:·       current assets (including credit lines and overdrafts);·       for investments;·       for financial leasing (including financial leasing limits).
Amount available for one economic operator:up to EUR 3 million.The guarantee covers up to 90% of the principal of a credit institution financing but not exceeding EUR 10 million. 
Limits of the aid amount:The amount of aid for an economic operator and the group of persons related to it may not exceed any of the following criteria:15% of the average turnover of the previous three concluded financial years*;50% of the total energy costs over a 12-month period prior to the month when the aid application is submitted*;liquidity requirements for the further 12 months for micro, small and medium-size enterprises or for the further 6 months for large enterprises (an exception for large enterprises: liquidity requirement for the next 12 months if financial security for trade activities in energy markets is to be provided). * For newly established companies, the existence period will be used in calculations.
Term:·       for current assets: up to 3 years with a possibility to extend the term for 1 year;·       for investments: up to 6 years. It is also possible to use a grace period or to delay payment of the principal (only interest for the use of loan are to be paid) for up to 1 year with a possibility to extend this period for another year.Up to 6 years.
Security:Reduced security requirements are applied, which means that ALTUM will evaluate issuing of a loan also if it is not fully secured.Security requirements are set by credit institutions, and the ALTUM guarantee serves as an additional security for the financing issued by commercial banks.
Sectors not supported by the programme: ·       trade of alcohol, arms and ammunition;·       production and trade of tobacco products;·       gambling and betting, financial and insurance activities;·       real estate operations and development of residential real estate;·       purchase of freight transport vehicles by commercial carriers;·       credit institutions and other financial institutions. If an economic operator represents one or several eligible and non-eligible sectors at the same time or performs not supported activities, it may apply for the aid by ensuring that these activities or costs are separated.·       trade of alcohol, arms and ammunition;·       production and trade of tobacco products;·       gambling and betting, financial and insurance activities;·       real estate operations and development of residential real estate. 
Restrictions on receipt of aid:The aid will not be available to economic operators:·       whose economic activities are not affected by the economic consequences of the Russian military aggression in Ukraine;·       that are subjects to international or national sanctions or in which direct or indirect decisive influence is exerted by persons from Russia or Belarus;·       that are not economically viable;·       that have a tax debt exceeding EUR 1,000 (does not apply to tax payments with a granted extension of payment period, with an agreement on voluntary tax payment; or a signed agreement on arrangements);·       that have signs of a company in difficulty (meet the criteria for initiating insolvency procedure; insolvency proceedings have been declared by a court ruling; legal protection proceedings or extra-judiciary legal protection proceedings are being implemented; a bankruptcy procedure has been initiated by a court ruling; financial recovery or friendly settlement has been applied; economic activity has been terminated).
Costs:·       annual interest rate: 2.9% + 6 month EURIBOR;·       execution and issuance fee: 0.6% of the principal, minimum EUR 150. No fee for reservation of funds is applied, and there is also no fee if the loan is repaid early (not applicable to refinancing of obligations).·       guarantee premium (an annual lump sum for using the guarantee): 0.25–2% per year.
Conditions for aid cumulation (merging or combining):The aid may not be combined with the following ALTUM support:a) the relevant other programme for overcoming the war consequences and the economic hardships caused by the Russian military aggression against Ukraine (loans with guarantees and the other way round);b) loan of current assets and guarantee to economic operators whose operations were affected by the spread of COVID-19. An economic operator may:a) receive several loans or guarantees within an aid programme for overcoming the war consequences, provided the maximum amount of aid is not exceeded and the conditions of aid amount limits are complied with;b) combine the aid for overcoming the war consequences with other support programmes, subject to conditions of such programmes and the limits on financing according to such conditions.
Duration of aid:The initial deadline was 31 December 2022, but on 20 December the Government decided to extend it by 31 December 2023. This decision is pending an approval by the European Commission, therefore economic operators should probably be ready for a slight interruption in granting the aid in the beginning of 2023.
Key principles and conditions for evaluating projects: ·       assessment of the compliance of the project with the aid programme requirements;·       evaluation of the activities necessary for the realisation of the project and of the resources required for implementing such activities (including evaluation of the grounds, proportionality and efficiency of the planned investments);·       assessment of the activities, life cycle of current assets and/or useful life of assets to be purchased;·         evaluation of the financial condition of the economic operator and of the long-term financial viability of the project;·         assessment of the potential business risks and possibilities for risk mitigation, etc.
Data retention:The recipient of the aid is obliged to retain the data on the aid for 10 years since the date of the decision to grant the aid.
Illegal aid:If violation of obligations for receiving the State aid is established, the economic operator is obliged to repay to the budget the whole State aid received illegally together with interest.
The programme is governed by:Cabinet Regulation No. 349 of 14 June 2022 “Regulations Regarding the Loan Programme to Reduce the Economic Consequences Caused by the Russian Military Aggression Against Ukraine.”Cabinet Regulation No. 377 of 21 June 2022 “Regulations Regarding the Guarantee Programme to Reduce the Economic Consequences Caused by the Russian Military Aggression Against Ukraine.”

If you require any assistance in attracting the aid described above, contact Leinonen SIA.
Additionally, we can also support you in attracting financing within other projects as well:

  • EU fund projects;
  • ALTUM aid programmes;
  • attracting financing from credit institutions and other financial institutions for making investments or for current assets.

Ilona Adamaite

Investments and Finance Advisor

Mobile: +371 24 664 392


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