Latvia

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

14/04/2020

Public support for trade credit insurance

Non-financial corporations

Restrictions on receiving export credit guarantees to the EU and certain OECD member states have been lifted

19/03/2020

Public guarantees

Non-financial corporations

Businesses affected by Covid-19 crisis can apply for guarantees for bank loan holidays. Direct and portfolio guarantees are provided respectively by Altum and selected commercial banks for new and existing loans, and cover up to 50% of the financial service (balance at the moment the guarantee is granted)

19/03/2020

Public loans

Non-financial corporations

Businesses affected by the Covid-19 crisis can apply for working capital loans. The working capital loan program allows to provide loans to businesses who in the current situation experience shortages of working capital necessary for their daily operations.

21/03/2020

Direct grants

All non-financial sector

If a crisis-affected employer is not employing the employee or has idle time, a remuneration shall be compensated to the employee in the amount of up to 75 per cent from the amount of the average remuneration of the previous six months but not more than EUR 700 per calendar month. The allowance for idle time is not taxable with personal income tax and mandatory State social insurance contributions. Self-employed persons also can apply for the idle time allowance (on special conditions)

21/03/2020

Tax deferrals

All non-financial sector

Crisis-affected taxpayers are entitled to apply for the extension of the tax payment term for a period of up to three years (applied also for those overdue tax payments, the payment term whereof has already been extended, provided that the delay has occurred as a result of COVID-19). The delayed tax payment is not subject to calculation of late interest.

Other tax-related measures for all taxpayers:
• Personal income tax (PIT) payers engaged in economic activities are allowed to forego making PIT advance payments in 2020 (late interest will not be calculated for non-performance).
• The local governments are entitled to set the real estate tax payment terms differently than those specified in the law On Real Estate Tax, postponing them within the scope of 2020 (for all taxpayers or by setting certain categories of taxpayers).
• All enterprises are provided with the possibility to extend the term for preparation and submission of their annual accounts to July 31.
• The State Revenue Service performs the overpaid VAT amount refund within a shorter term than the one provided by the effective VAT Law.

14/07/2020

Equity participation

Non-financial corporations

Establishment of an alternative investment fund aiming at the support of large and some medium companies. The fund will attract both public funds and private investments and will be managed by the state-owned development finance institution Altum. It is estimated that the fund will provide support to 20–30 large enterprises in the form of equity participation (by the fund and in cooperation with other private investors), quasi-equity investments (incl. mezzanine and convertibale loans) and investments in corporate bonds

29/04/2020

Private moratoria

All non-financial sector

Moratoria allow bank clients who are experiencing temporary financial difficulties due to COVID-19 to defer their mortgage principal payments

14/07/2020

Public guarantees

Non-financial corporations

To support large companies who are viable but affected by Covid-19 with a need for financing in order to recover, maintain and improve their competitiveness and increase turnover, incl. exports. Direct guarantees are provided for new and existing financial services. It is estimated that around 15 large companies will receive support and financial services of up to 450 MEUR will be guaranteed.

14/07/2020

Direct grants

Non-financial corporations

Grants for performers of economic activities in the tourism sector affected by the
Covid-19 outbreak

14/07/2020

Direct grants

Non-financial corporations

Grants for companies whose export activities have been severely hit by the COVID-19 outbreak, leading to liquidity shortages

04/11/2020

Direct grants

Non-financial corporations

Grants for performers of economic activities in the tourism sector affected by the
Covid-19 outbreak to cover wages and salaries and liquidity support for operational costs for hotels

10/11/2020

Direct grants

Non-financial corporations

Furlough benefits

10/11/2020

Direct grants

Non-financial corporations

Wage subsidy to part-time workers

10/11/2020

Direct grants

Non-financial corporations

Grant for support of working capital

17/12/2020

Public support for trade credit insurance

Non-financial corporations

Restrictions on receiving export credit guarantees to the EU and certain OECD member states have been lifted

17/12/2020

Public guarantees

Non-financial corporations

Businesses affected by Covid-19 crisis can apply for guarantees for bank loan holidays. Direct and portfolio guarantees are provided respectively by Altum and selected commercial banks for new and existing loans, and cover up to 50% of the financial service (balance at the moment the guarantee is granted)

17/12/2020

Public loans

Non-financial corporations

Businesses affected by the Covid-19 crisis can apply for working capital loans. The working capital loan program allows to provide loans to businesses who in the current situation experience shortages of working capital necessary for their daily operations.

17/12/2020

Public guarantees

Non-financial corporations

To support large companies who are viable but affected by Covid-19 with a need for financing in order to recover, maintain and improve their competitiveness and increase turnover, incl. exports. Direct guarantees are provided for new and existing financial services. It is estimated that around 8 large companies will receive support and financial services of up to 240 MEUR will be guaranteed.

18/12/2020

Tax deferrals

All non-financial sector

Crisis-affected taxpayers are entitled to apply for the extension of the tax payment term for a period of up to three years (applied also for those overdue tax payments, the payment term whereof has already been extended, provided that the delay has occurred as a result of COVID-19). The delayed tax payment is not subject to calculation of late interest.
Other tax-related measures for all taxpayers:

• Personal income tax (PIT) payers engaged in economic activities are allowed to forego making PIT advance payments in 2020 and 2021 (late interest will not be calculated for non-performance).
• The local governments are entitled to set the real estate tax payment terms differently than those specified in the law On Real Estate Tax, postponing them within the scope of 2020 (for all taxpayers or by setting certain categories of taxpayers).

12/01/2021

Direct grants

Non-financial corporations

Furlough benefits

12/01/2021

Direct grants

Non-financial corporations

Wage subsidy to part-time workers

18/02/2021

Direct grants

Households

A one-off aid in the amount of EUR 500 for each child

11/03/2021

Direct grants

Households

A lump sum benefit in the amount of EUR 200

04/02/2021

Public loans

Non-financial corporations

Public loans combined with direct grants are awarded to specific companies to finance viable artistic, entertaining and leisure events.

08/04/2021

Direct grants

Non-financial corporations

A lump sum grants (15 euros per square meter)

27/10/2021

Direct grants

Households

EUR 20 per months

26/03/2020

Other measure

Banking sector

FCMC has communicated to banks in case of breach of the combined buffer requirement it will use the option provided in Credit Institution Law to extend the term of drawing up and submission of the capital conservation plan in cases where the breach will have occurred after the Covid-19 outbreak. MDA restrictions remain in place.

26/03/2020

Other measure

Banking sector

FCMC has publicly communicated its stance that in current circumstances banks are expected to cancel or postpone their dividend payments regardless of their capital position.

26/03/2020

Other measure

Banking sector

FCMC has clarified to banks that in application of definition of default for borrowers from countries that have announced public moratoria calculation of days past due is suspended for this period.

26/03/2020

Other measure

Banking sector

FCMC has expressed its views on reclassification of exposures between Stage 1 and Stage 2, and Stage 2 and Stage 3 under IFRS9 taking a longer term view based on macroeconomic scenarios developed by ECB.

26/03/2020

Other measure

Banking sector

FCMC has informed banks that in light of Covid-19 outbreak it will provide flexibility in regard to their current targets in NPL strategies (Pillar 2 measure set out in FCMC local regulation on credit risk management). FCMC will continue dialogue with banks that have heightened NPL ratio to review NPL strategies accordingly. FCMC has also advised banks that moratoria on repayment of principle does not automatically trigger loan's classification as forborne and is not indication of increase of long term PD (if the financial difficulties of the borrower are assessed to be of short-term nature).

18/12/2020

Other measure

Other

FCMC has publicly communicated its stance that in current circumstances banks and insurers are expected to cancel or postpone their dividend payments regardless of their capital position. The publication refers to the relevant communication regarding conservative approach on dividends distributions by ECB, EBA, EIOPA and ESRB.