The situation in Latvia’s economy could be better, said Minister of Economy Viktors Valainis at meeting of members of Latvian Chamber of Commerce and Industry (LTRK).
He stressed that in recent years businessmen in Latvia have faced several serious challenges, including the Covid-19 pandemic, various problems in the financial sector, as well as the Russian-Ukrainian war.
“Under these conditions, we have to be able to organise on our own, become better, more competitive and help create a business environment focused on development,” stressed Valainis.
He said that in order to improve the economy the ministry is working on multiple possible solutions, not just accessibility of financial instruments but the reduction of the bureaucratic burden as well. For example, the Ministry of Economy has started work on the reduction of bureaucratic procedures in the construction sector. The plan is to reduce the time it takes for an idea to be realised to become a construction project by approximately 70%.
The minister also said the availability of capital for small and medium-sized businesses is also an important issue.
In this context Valainis suggested businessmen use Altum loan opportunities to receive loans with preferential terms and lower interest rates for high-risk exposures to small and medium-sized entrepreneurs up to EUR 100 000.
The minister said the ministry plans to resent a list of businesses that have used these options this year.
According to Valainis, this year, small and medium-sized businesses are expected to receive loans of at least EUR 50 million through these programs. If the results of the program are good, it will continue in 2025.
Valainis said that in addition to small and medium-sized businesses, the Ministry of Economy also supports large companies. For example, currently, in the loan program with a capital discount for projects of up to EUR 10 million, a total of EUR 100 million of loans have been issued this year so far.
The minister predicted that in the future, depending on demand, loans could become issued to small and medium-sized companies to finance projects under EUR 5 million.
“Together with you, these ideas need to be further refined to resolve issues that hinder the development of the business environment, and that can help give the growth we all expect,” stressed Valainis.
The minister also invited businessmen to be more actively involved in the issues of redistribution of structural funds for investments. He said that currently, about EUR 600 million have been distributed from structural funds, but a total of EUR 1.7 billion is planned for distribution.
“I am truly happy the topic of economy appears on the political agenda more and more,” said Valainis, adding that this was possible thanks to the involvement from businessmen.
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