ALTUM Loan Holidays Guarantee

Phase: Management
  • Access to finance
  • Response to COVID-19
  • Support of companies' growth
  • Support of SMEs
Last modified: 17 September, 2020
Оригинални назив:

ALTUM palīdzība COVID-19 krīzes skartajiem uzņēmējiem

Енглески назив:

ALTUM support to enterprises affected by COVID-19


Available to businesses, farmers, and those working in the fisheries and aquaculture industries (all companies, regardless of their size) affected by COVID-19 crisis.


Main characteristics

ALTUM is a state-owned development finance institution which offers state aid for various target groups with the help of financial tools (such as loans, credit guarantees, investing in venture capital funds, and so on). ALTUM develops and implements state aid programmes to compensate for the market's shortcomings that cannot be solved by private financial institutions.

ALTUM, in cooperation with the Ministry of Economy affairs, has prepared assistance measures for companies affected by the COVID-19 pandemic.

One of them is a credit guarantee that will allow the banks to defer payment of the principal amount due by companies which have experienced objective difficulties in making loan repayments during the COVID-19 crisis.

The amount of the financial service covered by the guarantee shall not exceed 25% of the business’ total turnover in 2019, but the maximum amount of the guarantee shall not exceed €5 million. The guarantee covers up to 50% of the amount of the financial service (at the moment the guarantee is granted). The term of the guarantee is up to 6 years for financial leasing and investment loans, and up to 3 years for working capital financial services. Guarantee premium is 0.5% per year.

Types of supported financial services:

  • Investment loans.
  • Loans to finance working capital, including credit limits (credit lines and overdrafts).
  • Financial leasing, financial leasing limits.

The measure is available until 31 December 2020.

The other measure provided by ALTUM is working capital loan. The maximum amount of loan is up to €1 million, but the total loan does not exceed at least one of the criteria:

  • 25% of 2019 turnover.
  • Loan amount must not exceed twice the total remuneration of employees (incl. social contributions) in 2019 (for those established in 2019, planned two-year amount).
  • The amount of liquidity required to ensure operation for the next 12 months.

The duration for loan is 1-3 years. The measure also includes possibilities to defer the payment of the loan up to 12 months, for reduced collateral requirements, and reduced percent rate.

The legislative acts supporting this measure are:

  • Law 'on measures for the prevention and suppression of threat to the state and Its consequences due to the spread of COVID-19' (adopted on 20 March 2020, valid from 22 March 2020).
  • Cabinet regulation No. 122, regarding the increase of the reserve capital provides funding for the measure. 
  • Cabinet regulation No. 150, regulations regarding guarantees for the enterprises whose activity has been affected by the spread of COVID-19 (adopted on 19 March 2020) regulates the measure.


  • National funds
  • Other

Involved actors

National government
ALTUM, state-owned development finance institution


According to ALTUM press release a total of 342 companies have received working capital loans for the total amount of €69 million, most of them are small (39%) and micro (41%) enterprises; 17%  of the loans were issued to medium-sized companies and 3% to large companies. The most demanded loan is financing up to €100,000 for one transaction, which was received by 68% of ALTUM customers. Among them, the smallest loan amounted to €1,840 and was received by a trading company from Riga. The 10% of entrepreneurs have borrowed financing from €101,000 to 200,000 during the crisis, 14% from €201,000 to 999,000, while 9% of companies have received the maximum loan amount of €1 million.

Working capital loans are most actively used by companies operating in the service sector (31%), manufacturing (24%) and trade companies (24%), as well as transport (9%), construction (7%) and agriculture (3%). Business loans are used by companies throughout Latvia during the crisis caused by the COVID-19. Most of the financed companies are located in Riga and Pieriga (65%), Latgale (12%), Kurzeme (10%), Vidzeme (7%) and Zemgale (6%).

Guarantees for bank credit holidays since 25 March 2020 have been granted for the total amount of financing of €82 million.


No information available.


No information available.


No information available.​​​​​​​
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