Information on implementation of ERDF activity “Loans for Raising of Business Competitiveness”: Promotional Programme for Improvement of Business Competitiveness (Implementer- Hipotēku banka) Riga, 21 January 2010

Promotional Programme for Improvement of Businesses Competitiveness (ERDF Loans for Improvement of Competitiveness)  Programme aim: improvement of competitiveness of SME and large enterprises, thereby promoting economic development  Implementation period: April December 2013  Planned: totally 430 loans of working capital and investment loans Total amount of Programme: 58.5 million. LVL  Financial sources: public financing (state + ERDF: 43.3 million. LVL; bank: 15.2 million LVL). Separate loan fund has been created for lending

Conditions of Loans (ERDF)  Programme provide loans to entities registered in Latvia, who has economically viable future business and who has limited access to finance  Basically loans are intended for processing businesses and businesses, which attract financing from EU structural funds  Investment loans up to 5 million LVL (up to 10 years)  Working capital loans up to 2.5 million LVL (up to 5 years)  Total amount of loans (working capital + investment) can’t exceed 5 million LVL  Small and medium-sized businesses should attract business owners (owns at least 10% of shares) as a guarantor  Large companies should pledge at least 75% of company shares or should attract business owners (owns at least 10% of shares) as a guarantor

Data of ERDF Loans for Improvement of Competitiveness (as at December 2009) :  Present approvals ~ 50% (29.5 million LVL)  Approved 29 loans, average loan amount: 1 million LVL  Programme will be finished by the end of 2011  In businesses will be supported from the repayments  The most supported sectors so far are: -production of electricity 54%; -wood-processing 19%; -manufacture of power tools 8%; -cosmetics industry 5% -other industries 14% (food production; metal production; printing industry; glass processing etc.)