Governor's approval secured for initiative promoting financial investments in Latvia
In a bid to strengthen the economic landscape of Latvia, a comprehensive plan has been unveiled by the Ministry of Economics, aiming to attract foreign investment and improve access to finance for non-financial corporations. The plan, developed in collaboration with the Ministry of Finance and the Bank of Latvia, outlines 15 key initiatives and goals to achieve these objectives.
One of the primary focuses is on establishing and updating Latvia's economic profile and investment portfolio, making it more appealing to potential investors. This includes enhancing the country's economic and investment offerings to showcase its unique advantages.
Another significant aspect of the plan is the promotion of public-private partnership projects. By encouraging collaborative efforts between the public and private sectors, the government aims to leverage investment opportunities and foster sustainable growth.
To provide financing and improve access to capital, efforts are being made to increase the balance of loans to non-financial corporations. Additionally, a supportive financial environment is being cultivated to encourage investment in Latvia.
A key initiative is the establishment of an Altum Equity Fund, which seeks to attract investments from private pension fund managers. This move is expected to bring in more capital for development projects in the country.
The plan also proposes the creation of an international partnership fund, similar to a concept introduced in Denmark. This fund would act as a reliable intermediary, facilitating the scaling of projects across various sectors in Latvia.
To support the development of early-stage business ideas in the higher education and research sectors, amendments have been made to the technology transfer support program. This update will help transfer technology from universities and research institutions to spin-off companies, fostering innovation and entrepreneurship.
Moreover, a co-financing platform is to be developed to support Altum's investments in small and medium-sized enterprises in Latvia. This platform is expected to provide financing for the development of scalable investments in the country.
The implementation of these measures could result in €2.4 billion in private investment, according to the Ministry of Economics. To achieve these tasks, the total expenditure is provisionally estimated at around €270 million.
Additionally, the possibility of introducing an export credit insurance model in Latvia is being assessed. This model could help protect Latvian exporters against commercial and political risks, potentially boosting the country's export sector.
Work is also being carried out to reduce bureaucracy and promote transparency in the system through the preparation of an assessment for the introduction of a single institute for the supervision and control of creditors. This move is intended to simplify the process for businesses seeking financing and ensure a fair and transparent environment.
The full list of the 15 specific tasks defined by the Latvian Ministry of Economics to attract foreign investment and improve access to finance for non-financial corporations is not provided in the available information. However, these initiatives and goals outlined above offer a clear direction towards a more investment-friendly and financially accessible Latvia.
- The government, in collaboration with private sector partners, is planning to promote public-private partnership projects to leverage investment opportunities and stimulate sustainable growth in the business sector.
- To attract more investments into development projects and enhance access to finance, the government is establishing an Altum Equity Fund and an international partnership fund, designed to bring in capital and facilitate scaling of projects across various sectors.
