Slakteris: EU structural fund projects will have additional financing
On Wednesday, February 4, the EIB Board of Directors approved additional 250 million Euro loan to Latvia for co-financing of the European Union (EU) fund projects in the new programming period 2007-2013, thus the total EIB financing for this goal will reach 750 million Euro.
The Ministers of Finance Atis Slakteris indicates: “This positive initiative of the EIB snows readiness of the international partner to continue granting of supporting to activities of the Government in Latvia. The loan facility is a proof of cooperation with international financial donors in Latvia’s Economic Stabilisation and Growth Revival Programme measures. As one of key incentives included in the budget for stabilisation of the national economy is the European Union structural funds, I have set a task to specialists of the Ministry of Finance to develop amendments to corresponding legislative acts till mid-February thus facilitating the flow of structural funding and implementation of projects.”
The Ministry of Finance plans to introduce changes in provisions regarding advance payments. There is a possibility foreseen to pay advance payments also in the EU fund projects to which the State aid has been granted. It will be possible to include advance payments paid to contractors (e.g., constructors) in expenditure declarations as well. It will result in reduced financial burden put on entrepreneurs, but advance payments reported to the European Commission will return more quickly to the state budget. Amendments will envisage to half the term for revision of payment recovery orders and the term for payments within the projects, thus the project implementer will be able to recover resources invested in the project sooner and it will speed up the total money flow.
In March it is planned to launch two new entrepreneurship programmes with total financing up to 63 million Lats: “Guarantees for promotion of business competitiveness” and “Loans for promotion of business competitiveness”.
As reported, in October last year Minister of Finance Atis Slakteris and the European Investment Bank (EIB) Vice-President Eva Srejber signed EUR 500 million loan to the Republic of Latvia. Latvia already received the first instalment in amount of 150 million Euro or 30% of the loan. Since the total amount of the loan increased to 750 million Euro Latvia will receive 75 million Euro in addition to the first instalment. The agreement with the EIB envisages possibility to choose the amount of each instalment, term of repayment, as well as kind of interest rate. The term of repayment could reach 25 years.
Annexed photo from the loan signing event on October 30, 2008.
In the photo the EIB Vice-President Eva Srejber and the Minister of Finance Atis Slakteris.
