Within the framework of the Juncker Plan, 15 million euros OF EU funding will be provided to micro-enterprises in Latvia

The European Investment Fund and the Latvian State-owned development finance institution ALTUM signed a microfinance guarantee contract within the framework of the European Union (EU) Employment and Social Innovation Programme (EaSI). This new financing agreement has been provided by the European Strategic Investment Fund (EFSI), which is a core for the Investment Plan for Europe. Within THE FRAMEWORK OF THE EU sponsored programme, micro-enterprises will be able to receive reduced interest rate loans with lower collateral requirements.
This new EaSI Guarantee Agreement will allow ALTUM to provide loans to 600 micro-enterprises throughout Latvia over the next three years. Within THE FRAMEWORK OF THE EU sponsored programme, micro-enterprises will be able to receive reduced interest rate loans with lower collateral requirements. ALTUM will focus mainly on start-ups and small businesses.
Marianna Teisena, COMMISSIONER for Employment, Social Affairs, Skills and Workers:
“With EU funding, ALTUM will improve access to finance for around 600 micro-enterprises in Latvia, many of which are faced with difficulties in obtaining loans from traditional banking sources. This new EaSI Guarantee Agreement will enable micro-enterprises to receive loans with favourable conditions. It once again points to the fact that the European Commission, with the support of the EaSI programme, is fully committed to promoting employment in Europe and involving more people in the labour market.”
Pierre Luigi Gilbert, CEO of THE EIF:
“I am delighted that this joint agreement will help ALTUM to provide a new microfinance product to meet the financing needs of micro-enterprises at both the initial and its development stages. Providing support to borrowers experiencing the risk of social exclusion and experiencing problems with access to the credit market contributes to the promotion of an open business culture. '
Reinis Berzins, Chairman of THE ALTUM Board:
“The cooperation agreement with THE EIF is an indication that the investment provided by the European Union's domestic markets with the help of various financial instruments is not abstract. This cooperation guarantees the possibility of providing independent support to micro-enterprises that may then apply for the necessary equity investments. The main beneficiaries of this programme are newly established companies and companies with negligible turnover: they can access finance up to eur 25,000 alone with personal guarantees and without collateral. We are happy about this EaSI Treaty as it will provide companies with access to finance under favourable conditions, thereby contributing to the sustainable economic growth of micro-enterprises."
The EaSI Guarantee Scheme was introduced in June 2015, financed by the European Commission and managed by the European Investment Fund. THE EIF will not provide direct financial support to companies but will implement this mechanism through local financial instruments such as micro-finance, social financing and guarantee institutions, as well as banks active in 28 EU Member States and countries participating in the EaSI programme. These intermediaries will cooperate directly with stakeholders to provide support under the EaSI Guarantee Scheme.
On the Employment and Social Innovation Programme
The European Commission's EaSI aims to support THE EU in its efforts to achieve a high level of employment, adequate and adequate social protection, to combat social exclusion and poverty and to improve working conditions. The EaSI Microfinance and Social Entrepreneurship sub-programme provides support to financial intermediaries offering micro-credit to entrepreneurs or financing for social enterprises. The aim is to increase access to micro-finance, which includes micro-credits, namely loans up to eur 25 000, particularly for vulnerable persons and micro-enterprises. In addition, the European Commission first supports social enterprises with investments up to €500 000. Support for micro-finance and social entrepreneurship is currently provided under the EaSI Guarantee Scheme, which allows financial intermediaries to achieve (potential) entrepreneurs who would otherwise be unable to obtain funding for risk reasons.
In addition, the Commission strengthens THE EFIS social dimension for both microfinance and social entrepreneurship. Overall, the amount of aid to these areas is expected to increase (from eur 193 million in EaSI) to around one billion euros, mobilising around three billion euros in additional investments.
Juncker Plan FOR EU Economic Growth
The Investment Plan for Europe or Juncker Plan is one of THE EU's priorities in order to increase investment and create jobs and growth by removing barriers to investment, ensuring visibility and technical support for investment projects, and smarter use of existing and new financial resources. With guarantees from the European Strategic Investment Fund, THE EIB and THE EIF are able to take a larger part of the project risk by encouraging private investors to participate in projects. In December 2017, the European Parliament and the Member States agreed to extend THE duration of THE EFSF and increase its financial capacity. As of July 2018, the Juncker Plan WILL provide €335 billion to THE EU and improve access to finance for around 700 000 small and medium-sized enterprises.
On the European Investment Fund
The European Investment Fund (EIF) is an integral part of the European Investment Bank Group. Its main task is to provide support to European micro-enterprises, small and medium-sized enterprises, helping them access finance. THE EIF shall develop and develop risk and growth capital, guarantee and microfinance instruments aimed specifically at this market segment. In carrying out these tasks, THE EIF supports EU objectives to promote innovation, research and development projects, entrepreneurship, growth and employment.
About ALTUM
The development finance institution ALTUM is a Latvian state-owned capital company that provides support to certain target groups in the form of financial instruments with the aid of State aid financial instruments (loans, guarantees, investments in venture capital funds, etc.), complementing it with non-financial support (consultancy, mentoring) as well as selling other State delegated functions within the framework of specific programmes. In June 2017, ALTUM received the international credit rating company Moody's long-term credit rating for Baa1 State capital company, which confirms ALTUM's stable financial situation. In turn, ON October 24, 2017, ALTUM's bonds were ̧ into a regulated market - the Nasdaq Riga Baltic para list.