Latvia Government's Assistance for Companies

State Assistance for Companies Affected by the Pandemic in Latvia

Latvia Government's Assistance for Companies
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Latvian government stated that, for the companies and businesses affected by the pandemic, state assistance will be provided. As known, the second wave of pandemic that already started in many countries affected economies negatively and it is still doing so. It can be said that current negative effects are also seen in Latvia. In order for companies not to be affected from this current negative situation too much, assistance will be provided by the state to companies. What will be the context of the assistance package provided to companies in Latvia? Who will be able to get it? All details can be found in our article.

Assistance by Latvian Government to Companies

In many countries, only companies functioning in specific businesses are provided assistance. However, in Latvia, there will be no such criteria. All companies will be able to get state assistance. By the state, 3 assistance funds have been created with different conditions. Details are below:

  • >>> Assistance to employees
  • >>> Assistance to companies that continues making business in a limited way
  • >>> Assistance to people or companies who/which are not able to work due to pandemic

When the contexts are evaluated, it can be understood that the assistance will be provided not only to companies but also to individuals. With these assistances, it can be said that the consequences of Covid19 pandemic will be overcome significantly.

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Statement from the Ministry of Economy

When statements by the Ministry of Economy are examined, it can be understood that the payments will be done between 9th of November and 31st of December. Aim of this state assistance is to balance monetary stability of companies that are affected by the restrictions coming from the past and going on.

  • >>> First of the assistances that will be offered will be as wage subsidy for the employees working in a restricted routine.
  • >>> The other one will be as off-time assistance to entrepreneurs, their employees, self-employed people and patent employees.

The amount of the assistance provided to entrepreneurs will be calculated as 50% of the gross wage that was declared for the period between August 1st, 2020, and October 31, 2020. Yet, the assistance amount will not be more than 500€ per employee.

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Budget Allocated For The Assistance

Measures taken by the Latvian government are generally as shared above. For state assistance that will be offered during this period, 67 million Euro has been allocated from the government budget. This amount is considered enough in general. Another news is that, if the already allocated amount can’t meet the demand, additional budget can be allocated. In case the effects of Covid19 pandemic persist in 2021, it is considered as certain that similar assistances will be offered from 2021’s budget.

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  • https://eng.lsm.lv/article/economy/economy/all-companies-with-turnover-drop-will-be-able-to-get-state-aid-in-latvia.a382949/

Igors Krumins continues his activities as a commercial and international lawyer within the body of “Jurmala Invest”. He has more than 10 years of experience, especially in the investment sector, and has provided consultancy services to numerous companies with his legal expertise. He successfully completed his undergraduate studies at Baltic International Academy and graduate studies at Latvijas Universitate. Apart from his native Latvian language, he can also speak Russian and English fluently.