Latvia has received from the EC the final payment ~19 million euro within the framework of 2004-2006 period
Latvia has received from the European Commission (EC) the third out of four European Union (EU) structural fund final payments in amount of ~19 million euro within the framework of the European Regional Development Fund (ERDF).
“It is a very positive message because it means that Latvia has acquired successfully all resources available within the framework of the European Regional Development Fund in previous period, and now the EC has repaid the last 5% of Latvia’s declared expenditure. Thus in general these investments have provided such a contribution to the Latvian business, science and public infrastructure that would not be possible for Latvia to achieve with pure budget resources and beneficiaries’ own resources,” emphasises Deputy State Secretary on EU Fund Issues Armands Eberhards.
Within the framework of the ERDF Latvia had in 2004-2006 period the biggest amount of financing available in comparison to other funds – ~382 million euro, up to now the European Commission (EC) had repaid to the Latvia budget 95% of the amount declared within the framework of the ERDF, but remaining 5% are paid by the EC to Member States after final documents about the structural fund acquisition are considered and evaluated (whether expenditure is eligible). Latvian was one of the first EU Member States who submitted final documents on the structural fund acquisition – three months before the deadline in June 2010.
In total in 2004-2006 period EU structural fund investment in the Latvian economy is 625.6 million euro from four funds – European Social Fund, European Regional Development Fund, European Agriculture Guidance and Guarantee Fund and Financial Instrument for Fisheries Guidance.
As reported earlier, last year Latvia received in its budget from the EC the final payment ~4.6 million euro within the framework of the Agriculture Fund, and the final payment 6.4 million euro from the European Social Fund. The MoF also expects soon the final payment within the framework of the EC Fisheries Fund ~0.8 million euro.
It should be noted that Latvia is one of the EU Member States who ensure timely and successful implementation of structural funds, including compliance with the so-called “N+2” condition in 2004-2006 programming period. The “N+2” principle means that a repayment of financing for the financing allocated in current year should be requested from the EC within two years from the allocation. In case the structural fund financing is not requested, it is automatically deducted from the total allocated funding.
Regarding the circulation of EU funding, the MoF reminds that the invested money is first paid to project promoters from state budget resources, and then Latvia submits an expenditure declaration to the EC on repayments made within projects and receives repayments from the EC to the budget.
In 2004-2006 period the Agriculture and Fisheries Funds were managed by the Ministry of Finance, but in 2007-2013 period both funds are managed by the Ministry of Agriculture.
Information prepared by:
Agnese Belkevica
Deputy Head of the Communication Division
Phone: 67083938
Agnese.Belkevica@fm.gov.lv
