IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 15 Dec 2009 | Removal date: 13 Dec 2019
Still in force

Loan guarantee

On 1 December 2009 Latvia notified an individual guarantee measure in favor of JSC Liepajas Metalurgsin order to secure a loan that will be granted to the company by Unicredit MedioCredito Centrale Spa.
 
LM1, the recipient of the State guarantee, is a manufacturer of rolled steel products based in Liepaja, Latvia - the only metallurgical company in the Baltic States.
 
In 2008, LM had 2,633 employees and sold 620,000 tones of rebar. The annual turnover amounted to EUR 365 m in 2008 (up from EUR 315 m in 2007) with a net profit of EUR 9 m in 2008 (down from EUR 23 m in 2007).
 
The Commission gave the following assessment:
 
" The guarantee is granted by the Minister of Finance and is clearly imputable to the State involving its resources since, in the event Latvia would actually have to pay out money under the guarantee, the necessary funds would be drawn from the State budget, which is consequently burdened by the financial risk linked to the guarantees. The guarantee is selective since it is granted to a single undertaking, LM, at the discretion of the Latvian Government. Moreover, as there is extensive trade in steel and steel products within the Union, the advantage granted to LM by means of the guarantees would be liable to affect trade between the Member States. This is all the more so because LM exports the bulk of its output to the rest of the EU." (par. 33-35 of the letter from the EC to Latvia - Brussels, 15.12.2009 C(2009)10225 final).
 
The Commission found that the measure is compatible with the internal market on the basis of
Article 107(3)(b) TFEU.
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

393 Metal wastes or scraps
7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel.
720449 Other
411 Basic iron & steel
7201 Pig iron and spiegeleisen in pigs, blocks or other primary forms.
720110 Nonalloy pig iron containing by weight 0.5 % or less of phosphorus
7202 Ferroalloys.
720211 Containing by weight more than 2 % of carbon
720221 Containing by weight more than 55 % of silicon
720230 Ferrosilicomanganese
7206 Iron and nonalloy steel in ingots or other primary forms (excluding iron of heading 72.03).
720690 Other
7207 Semifinished products of iron or nonalloy steel.
720711 Of rectangular (including square) crosssection, the width measuring less than twice the thickness
720720 Containing by weight 0.25 % or more of carbon
412 Products of iron or steel
7208 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, hotrolled, not clad, plated or coated.
720826 Of a thickness of 3 mm or more but less than 4.75 mm
720827 Of a thickness of less than 3 mm
720838 Of a thickness of 3 mm or more but less than 4.75 mm
720839 Of a thickness of less than 3 mm
720840 Not in coils, not further worked than hotrolled, with patterns in relief
720851 Of a thickness exceeding 10 mm
720852 Of a thickness of 4.75 mm or more but not exceeding 10 mm
720853 Of a thickness of 3 mm or more but less than 4.75 mm
720854 Of a thickness of less than 3 mm
7209 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, coldrolled (coldreduced), not clad, plated or coated.
720916 Of a thickness exceeding 1 mm but less than 3 mm
720917 Of a thickness of 0.5 mm or more but not exceeding 1 mm
720926 Of a thickness exceeding 1 mm but less than 3 mm
720927 Of a thickness of 0.5 mm or more but not exceeding 1 mm
7210 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, clad, plated or coated.
721012 Of a thickness of less than 0.5 mm
721049 Other
721070 Painted, varnished or coated with plastics
7211 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, not clad, plated or coated.
721123 Containing by weight less than 0.25 % of carbon
721129 Other
7212 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, clad, plated or coated.
721230 Otherwise plated or coated with zinc
7214 Other bars and rods of iron or nonalloy steel, not further worked than forged, hotrolled, hotdrawn or hotextruded, but including those twisted after rolling.
721420 Containing indentations, ribs, grooves or other deformations produced during the rolling process or twisted after rolling
721491 Of rectangular (other than square) crosssection
721499 Other
7215 Other bars and rods of iron or nonalloy steel.
721550 Other, not further worked than coldformed or coldfinished
721590 Other
7216 Angles, shapes and sections of iron or nonalloy steel.
721610 U, I or H sections, not further worked than hotrolled, hotdrawn or extruded, of a height of less than 80 mm
721621 L sections
721631 U sections
721632 I sections
721633 H sections
721650 Other angles, shapes and sections, not further worked than hot rolled, hotdrawn or extruded
721661 Obtained from flatrolled products
721691 Coldformed or coldfinished from flatrolled products
7217 Wire of iron or nonalloy steel.
721710 Not plated or coated, whether or not polished
7219 Flatrolled products of stainless steel, of a width of 600 mm or more.
721923 Of a thickness of 3 mm or more but less than 4.75 mm
721933 Of a thickness exceeding 1 mm but less than 3 mm
7220 Flatrolled products of stainless steel, of a width of less than 600 mm.
722011 Of a thickness of 4.75 mm or more
7221 Bars and rods, hotrolled, in irregularly wound coils, of stainless steel.
722100 Bars and rods, hotrolled, in irregularly wound coils, of stainless steel.
7222 Other bars and rods of stainless steel; angles, shapes and sections of stainless steel.
722219 Other
7225 Flatrolled products of other alloy steel, of a width of 600 mm or more.
722519 Other
722540 Other, not further worked than hotrolled, not in coils
7228 Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or nonalloy steel.
722830 Other bars and rods, not further worked than hotrolled, hotdrawn or extruded
722850 Other bars and rods, not further worked than coldformed or cold finished
722860 Other bars and rods
7229 Wire of other alloy steel.
722990 Other
7301 Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel.
730110 Sheet piling
7302 Railway or tramway track construction material of iron or steel, the following : rails, checkrails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (crossties), fishplates, chairs, chair wedges, sole plates
730210 Rails
730230 Switch blades, crossing frogs, point rods and other crossing pieces
730290 Other
7303 Tubes, pipes and hollow profiles, of cast iron.
730300 Tubes, pipes and hollow profiles, of cast iron.
7304 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel.
730439 Other
7305 Other tubes and pipes (for example, welded, riveted or similarly closed), having circular crosssections, the external diameter of which exceeds 406.4 mm, of iron or steel.
730512 Other, longitudinally welded
730531 Longitudinally welded
7306 Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel.
730619 Other
730630 Other, welded, of circular crosssection, of iron or nonalloy steel
730661 Of square or rectangular crosssection
730690 Other
7307 Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel.
730719 Other
730799 Other
421 Structural metal products & parts
7308 Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridgesections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors,
730810 Bridges and bridgesections
730820 Towers and lattice masts
730830 Doors, windows and their frames and thresholds for doors
730840 Equipment for scaffolding, shuttering, propping or pitpropping
730890 Other
422 Tanks, reservoirs & containers of iron, steel or aluminium
7309 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
730900 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
429 Other fabricated metal products
7310 Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat insulated, but not fitted with mechanical or thermal equ
731010 Of a capacity of 50 l or more
731021 Cans which are to be closed by soldering or crimping
731029 Other
7317 Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 83.05) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper.
731700 Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 83.05) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper.
7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotterpins, washers (including spring washers) and similar articles, of iron or steel.
731815 Other screws and bolts, whether or not with their nuts or washers
731829 Other
7323 Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel.
732393 Of stainless steel
7325 Other cast articles of iron or steel.
732510 Of nonmalleable cast iron
732599 Other
7326 Other articles of iron or steel.
732619 Other
732690 Other
448 Domestic appliances & parts
7321 Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gasrings, plate warmers and similar nonelectric domestic appliances, and parts thereof, of iron or steel.
732111 For gas fuel or for both gas and other fuels
7322 Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor
732219 Other

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