1. Information on implementation process of ERDF activity 2.2.1.4. “Loans for development of enterprise competitiveness” (Implementor- Mortgage and Land bank of Latvia)

2. Promotional Programme for Improvement of Businesses Competitiveness (ERDF Loans for Improvement of Competitiveness)  Objective: To provide access to financial resources to entrepreneurs for business development and implementation of European Union fund’s projects by receiving loans in situations when their own collateral is insufficient to attract the necessary amount of credit resources and business is considered too risky to receive funding from banks, as well as to facilitate the competitiveness of Latvian companies, promote entrance to new markets and strengthening positions in the current markets.  Implementation period: April 2009 - December 2013  Budget of the Programme: 58.5 million. LVL  Financial sources: public financing (state + ERDF: 45.45 million LVL; bank - 15.2 million LVL).  Separate loan fund has been created

3. Conditions of Loans (ERDF)  Within the programme loans have been provided to entities registered in Latvia, who has economically viable future business and who has limited access to finance  Basically loans are intended for processing businesses, as well as businesses which attract financing from EU structural funds  Investment loans have been issued for total amount up to 5 million LVL (duration - up to 10 years)  Working capital loans have been issued for total amount up to 2.5 million LVL (duration - up to 5 years)  Total amount of loans (working capital + investment) that has been provided to one entity can’t exceed 5 million LVL  Small and medium-sized businesses should attract business owners (owns at least 10% of shares) as a guarantor  Large companies should pledge at least 75% of company shares or attract business owners (owns at least 10% of shares) as a guarantor

4. Data of ERDF Loans for Improvement of Competitiveness (on March 1, 2010) :  Present approvals ~ 55% (32.1 million LVL)  Approved 30 loans, average loan amount: 1.07 million LVL  It is envisaged that all resources will be provided to entities by the end of 2011  In 2012 - 2013 businesses will be supported from the repayments  The most supported sectors so far are: -production of electricity 50%; -wood-processing 19%; -manufacture of power tools 8%; -cosmetics industry 4% -other industries 19% (food production; metal production; printing industry; glass processing etc.)