Students through ALTUM will receive European supported study credits
In cooperation with commercial banks, the development finance institution ALTUM and the European Investment Fund (EIF), with the support of the Investment Plan for Europe, provide more advantageous loans to students and teachers in Latvia to help them cover their research and housing costs. THE EIF signed a guarantee article that will allow ALTUM to continue providing its guarantee programme to Latvian banks, supporting students and teachers in Latvia. It is expected that up to 13 500 students and teachers in Latvian universities will be able to use more advantageous loan conditions to cover their study and housing costs.
In June 2020, a guarantee programme was established in Latvia to support the financing needs of Latvian university students. Loans may cover both training and living expenses. As this programme was very positive on the market, the entire budget allocated to the programme was fully allocated. The European Investment Fund, which is in turn supported by the European Commission's Investment Plan for Europe “Skills and Education Guarantee Pilot Programme”, cooperates with ALTUM to support the continuation of this programme and increase the number of loan beneficiaries. Thanks TO THE EFSI skills and education guarantee pilot programme, ALTUM will not only be able to support higher education in Latvian universities, but also expand this programme to include non-academic training for students, as well as teaching fees and living expenses for students studying abroad.
Executive Vice-President of the European Commission Valdis Dombrovskiswho is responsible for the economy and international trade, says:
It is important to invest in our young and future economies. I am pleased that, with the support of the European Investment Fund and Investment Plan for Europe, Latvian students and teachers will be able to supplement their knowledge and skills by receiving study loans with favourable conditions. Extending the existing guarantee programme will allow a further number of young people to cover the costs of study and living.
THE EXECUTIVE Director of THE EIF, Alans Goddards, commented:
This programme is extremely important to provide more people with the opportunity to obtain higher education and develop their skills with both personal and economic benefits, particularly those who might otherwise be unable to afford it. THE ALTUM programme is a great initiative and we are pleased that we can rely on the support of the European Commission to achieve this.
Chairman of THE ALTUM Board Reinis Berzins:
The guarantees of the European Strategic Investment Fund offer an opportunity to provide a wider range of students from the beginning of the next academic year, irrespective of the change in demand. Another significant improvement expected - after amendments to the relevant Cabinet regulations, it will also be possible to receive a study and student loans for studies abroad. With his experience and knowledge, we are prepared to continue to guarantee the issuance of guarantees, as well as to encourage new co-operation partners to engage in study and student lending so that funding for students becomes more accessible.
Currently, the study and student loans in Latvia are issued by Swedbank. Since the start of the programme, more than 3300 studies and student loan agreements have been concluded with THE ALTUM guarantee for a total amount of more than eur 23 million.
General information:
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its main task is to support European micro-enterprises, small and medium-sized enterprises (SMEs) by helping them access finance. THE EIF shall develop and develop risk and growth capital, guarantee and microfinance instruments specially designed for this market segment. Through this role, THE EIF contributes to THE ACHIEVEMENT OF EU objectives in support of innovation, r & d, entrepreneurship, growth and employment.
The European Strategic Investment Fund (EFSI) is the main pillar of the Investment Plan for Europe. It provides first-round loss guarantees, allowing THE EIB Group to invest in risky projects. Projects and contracts approved for financing from EFSI have so far mobilised €56.5 billion in investments, providing support to more than 1.4 million SMEs. The pilot programme for skills and education is a debt financing initiative aimed at stimulating investment in education, training and skills so that more people can find jobs and respond better to changing needs of the European economy. Investment in skills contributes to growth, competitiveness and social convergence while addressing the challenges of digital transformation and the transition to a non-carbon economy.
ALTUM is a state-owned financial institution that offers State aid to various target groups through financial instruments (e.g. loans, credit guarantees, investments in venture capital funds, etc.). ALTUM is developing and implementing State aid programmes to compensate for market failures which cannot be resolved by private financial institutions. In June 2017, Moody's ALTUM awarded Baa1 an international credit rating demonstrating its strong financial stability.