Is it possible to receive financial resources from the LGA in money terms?
The LGA issues credit guarantees, which are not directly money, as well as mezzanine loans, which is direct project financing.
Does one have to pay for a LGA guarantee?
Yes, guarantees are issued for a fee, but their assessment is free of charge.
Does the LGA support set-up enterprises?
Yes, enterprises that are already working, as well as those, which have only just commenced economic activity.
What ensures the obligations made by the LGA?
LGA has a fixed capital of LVL 79 million.
Are free consultation available with the LGA?
Yes, it is possible to receive free consultations with the LGA. Consultations regarding LGA guarantees may also be received at a bank.
What are the typical reasons for refusing a LGA guarantee?
For credit guarantees : do not comply with the programme criteria ; the project does not have the potential to be economically viable. For export guarantees: insufficient data regarding the buyer’s financing export guarantees ; too high a buyer’s or buyer’s country risk.
How is the commission determined for the guarantee issued by the LGA?
The LGA premium rate is determined, by assessing the finances and security for the project. The limits thereof are from 0.2% up to 2%.
Is the LGA the only one that issues this type of credit and export guarantees in Latvia?
No, the Rural Support Fund (LAF) also issues guarantees, which are basically aimed at supporting Latvia’s agriculture.
