1. Absorption progress of EU Structural Funds within the competence of the Ministry of Economics 14/06/2007

2. Financial absorption  In 2004-2006 all in all LVL 116.134 M from EU Structural Funds are available to the MoE  State aid programmes for the private sector: Agreements signed in total with final beneficiaries for the amount of LVL 157.1 M, out of these: - EU Structural Funds LVL 99.56 M; - State budget funding LVL 57.5 M. Support provided to 771 commercial entity in Latvia.  Support measures for the public sector: Agreements signed in total for LVL 22.5 M, out of these: - EU Structural Funds LVL 16.42 M; - State budget funding LVL 6.08 M. Signed 44 agreements with municipalities, their commercial companies and public organisations.

3. Expenditure in breakdown by support programmes (private sector, M LVL)

4. Expenditure in breakdown by support measures (public sector, M LVL)

5. Expenditure in breakdown by regions (private sector, %)

6. Expenditure in breakdown by regions (public sector, %)

7. Expenditure breakdown by sectors of national economy (private sector) Sector of national economyLVL (M)% Mining industry, manufact. of construction materials, construction services27.23120.21 Forest exploitation/ wood processing24.66518.31 Metal processing17.73913.17 Chemical industry13.72810.19 Publishing/printing8.2566.13 Food industry6.6894.96 Recreation/ tourism and hotel services5.4794.07 Textile industry4.8603.61 Manufacturing of electronic equipment4.1833.10 Transport3.9142.91 Processing of raw materials2.7512.04 Health care1.7131.27 Services10.0197.44 Other sectors35032.60 TOTAL134.731100

8. Expenditure breakdown by sectors of national economy (private sector)

9. Attracted national funding (result indicator) In total national co-funding attracted for LVL 128.019 M

10. Attracted national funding against planned

11. Number of approved projects in breakdown by aid schemes (output indicator) Aid scheme Number of projects SAS 1.1 "Creation and reconstruction of connections required for development of infrastructure" 26 SAS 1.2 "Business improvement according to requirements of standards"258 SAS 1.3 “Creation of separated infrastructure"15 SAS 2.0 “Support for development of new products and technologies"45 SAS 3.1 “Consultation services"300 SAS 3.2 “Participation in international exhibitions and trade missions"94 SAS 4.0 "Support for training, re-training and raising of qualification of employed" 157 “Loans (incl. microloans) for business start-ups"84 “Development of loan guarantee system"49 TOTAL1 028

12. Programme demand (private sector, pcs)

13. Aid disbursed (private sector, M LVL) Aid scheme200520062007 SAS 1.1 "Creation and reconstruction of connections required for development of infrastructure" 0.0000.6911.063 SAS 1.2 "Business improvement according to requirements of standards" 5.72017.56910.870 SAS 1.3 “Creation of separated infrastructure"0.0610.1190.073 SAS 2.0 “Support for development of new products and technologies"0.0000.3510.482 SAS 3.1 “Consultation services"0.1981.0590.642 SAS 3.2 “Participation in international exhibitions and trade missions"0.0170.0560.110 SAS 4.0 "Support for training, re-training and raising of qualification of employed" 0.0080.1570.453 “Loans (incl. microloans) for business start-ups"0.0001.6562.610 “Development of loan guarantee system"0.0001.9421.918 TOTAL6.00423.60318.221

14. Investments in fixed assets in 2005 (co-funded from EU Structural Funds) Sector of national economyInvestments LVL (M) Of industry* % Agriculture, hunting and forestry (A)0.900.74 Mining industry and quarrying (C)0.939.50 Processing industry (D)26.786.10 Construction (F)0.260.14 Hotels and restaurants (H)0.00 Transport, storage and communication (I)1.500.40 Operations with real estate; lease and other commercial activities (K)0.100.02 Other utility, social and individual services (O)0.00 TOTAL30.471.13 *According to CSB data on total investments for acquisitions of fixed assets in breakdown by sectors of national economy

15. Evaluation of efficiency of aid schemes and funding used has been started: On the level of national economy – identifying project impact on indicators of national economy On sectoral level – identifying project impact in breakdown by sectors On project level – evaluating aid impact on business growth compared to situation before implementation of the project, and with average industry indicators Currently data are gathered on project indicators and sector indicators

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