According to the press secretary of the EC Representation, the Latvian-funded program is intended to support companies engaged in the export of goods and services in the context of the Covid-19 outbreak. The program was approved under the temporary framework for State aid measures. Public support in the form of direct grants will cover up to 25% of the mandatory social security contributions paid by the beneficiaries.
The program will be available to companies in all sectors engaged in exports, but there are some exceptions set by Latvia, such as companies operating in the following areas – primary agricultural production, processing and marketing of agricultural products, fisheries and aquaculture, as well as the financial sector. .
The aim of the program is to meet the working capital needs of companies affected by the current crisis and to help them stay in business, start investing and keep jobs during and after the pandemic.
The Commission found that the Latvian program complied with the conditions of the European Union (EU) temporary regulation. In particular, the aid per company will not exceed EUR 800 000 as set out in the Temporary Framework. The Commission concluded that the measure was necessary, appropriate and proportionate to prevent a serious disturbance in the economy of a Member State.
On July 14, the government supported the proposal of the Ministry of Economics (MoE), which provides for the state to subsidize the salaries of employees of exporting companies affected by the Covid-19 crisis, allocating 51 million euros.
According to the State Revenue Service, 350 companies qualify for support.
The support will take the form of a grant to compensate the economic operator for the wages of the Covid-19 crisis.
The support will be set at 25% of the mandatory state social insurance contributions paid by the particular company in 2019, but not more than 800,000 euros for a related group of persons.