On Thursday, March 5, the European Union (EU) funds’ financing programme for Latvian entrepreneurs to raise capital in the stock exchange has been solemnly opened with a bell-ringing ceremony in Nasdaq Riga. The allocation of one million euro from the European Regional Development Fund is intended for this purpose.
The first support programme of such kind in the Baltic States was opened for the entrepreneurs by the Minister for Economics Ralfs Nemiro: "The Ministry of Economics, in cooperation with the European Bank for Reconstruction and Development and the Ministry of Finance, as well as the branch experts, following two years of intensive work, has managed to develop the programme that will promote raising financing in the capital markets necessary for the development of Latvian merchants. We do hope that the new support programme would encourage merchants to increasingly consider the possibility of raising financing in the stock exchange, which would ensure further development and more rapid growth of the enterprise".
It is planned that, within the scope of the new support programme, over the period of the next three years, at least 20 small and medium-sized enterprises would receive co-financing for successful issue of stock or debt securities in the stock exchange, covering up to 50% of the total preparatory costs.
Director of the Central Finance and Contracting Agency (CFCA) Mārtiņš Brencis: "Such type of the EU funds’ support is new to the entrepreneurs - the results of the 2017 Survey of the European Commission on the access to finance of enterprises demonstrated that about one fourth of Latvian small and medium-sized merchants would be ready to raise financing in the capital markets that could facilitate their growth opportunities. The Ministry of Economics has created a programme to provide such opportunity. Even though this programme is not expected to gather numerous enterprises, nonetheless, each successful listing would benefit Latvian economy."
Chairperson of the Management Board of Nasdaq Riga Daiga Auziņa-Melaksne said: “Nasdaq Riga highly appreciates the support programme for raising capital in the stock exchange, as it is essential for sustainable development of Latvian economy. This EU funds’ support will promote the growth of small and medium-sized enterprises in Latvia, providing for the possibilities to raise capital via stock exchange for growing enterprises. At the same time, this will also enlarge the investment options for stock exchange investors - Latvian residents and pension funds - into the capital of local enterprises. The development of capital markets is important, as it promotes contribution of savings of private individuals into productive investments, creation of new jobs and the growth of tax revenue in the central government budget and, thus, welfare of population and economic growth."
At the first stage of selection, the CFCA accepts the applications of enterprises for receipt of the EU funds financing starting from today, March 5 till May 5 this year.
Nasdaq MarketSite welcome call, when launching the EU funds’ support programme, was observed also in the New York Times Square.
