Latvia has received the first final payment from the EC within EU funds period 2004-2006
Latvia has received in its budget the first of four final payments from the European Commission (EC) within the European Union (EU) structural funds period 2004-2006 in amount of ~4.6 million euro under the European Agriculture Guidance and Guarantee Fund.
“These are very positive news because it means that Latvia has acquired successfully all resources available in the previous period under the European Agriculture Guidance and Guarantee Fund, and now EC has repaid remaining 5% of expenditure declared by Latvia. Thus in general these investments have contributed to the Latvian economic development more than would be possible with only state budget resources and own resources of beneficiaries,” emphasised Deputy State Secretary on EU Funds Issues Aleksandrs Antonovs.
Under the European Agriculture Guidance and Guarantee Fund in 2004-2006 period Latvia had 91.8 million euro available. Up to now the EC repaid to the Latvian budget 95% of declared expenditure under the Agriculture Support Fund, but remaining 5% are paid by the EC to Member States after closure documents on acquisition of structural funds submitted by Member States have been considered and evaluated (whether expenditures have been made appropriately). Latvia submitted closure documents on acquisition of structural funds to the EC among the first of EU Member States three months before the deadline in June last year.
In total in 2004-2006 period EU structural investments in amount of 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 – have been put in the Latvia economy. MoF also expects to receive soon remaining three final payments from the EC.
Latvia is among the EU Member States which ensured timely and successful implementation of structural funds, including compliance with the so called “N+2” rule in the whole 2004-2006 period. “N+2” principle means that funding repayment should be requested from the EC within two years from the granting year for the structural funding granted in current year. In case structural funding is not requested, it is automatically deducted from the total allocation.
Regarding circulation of EU funds financing, the MoF reminds that the money invested by project promoters is initially repaid from the state budget. After that Latvia submits an expenditure declaration to the EC on all repayments done within projects and receives repayments from the EC to the budget.
In 2004-2006 period Agriculture and Fishery Funds were managed by the Ministry of Finance, but in 2007-2013 period they are managed by the Ministry of Agriculture.
Information prepared by:
Agnese Beļkeviča
MoF Communication Division
Phone 67083938
Agnese.Belkevica@fm.gov.lv
