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: 01 Jan 2010 | Removal date: 30 Dec 2019
Still in force

Interest payment subsidy

On 18 May 2009, Latvia notified the European Commission about its intention to support agricultural producers through a partial interest rate subsidy scheme.
 
The scheme is designed to cover part of the annual interest paid on the loans of firms active in the 'primary production of agricultural products' (para. 9, letter from the EC to Latvia, Brussels 21.8.2009).
 
The aid will not exceed 10 per cent of the annual credit payments and amounts for a total of EUR 85.4 million. The scheme enters into force on 1 January 2010 and will expire on 31 December 2013.
 
The EC finds that: The measure confers advantage on recipients. The partial subsidy of credit interest constitutes an investment aid providing economic benefit to an undertaking which it would not have received in its normal course of business and creating wider opportunities for the beneficiaries to obtain credit. There is an important cross-border trade in agricultural products. The advantage is granted through State resources and it favours certain agricultural undertakings active in the Republic of Latvia. It is therefore liable to distort competition and to affect trade between Member States
 
Prolongation of the Scheme: SA.37694
On 11 November 2013, Latvia informed the EC about its intention to prolong the scheme until 31 December 2019.
Latvia confirmed that: 'with the exception of prolonging the duration of the N301/2009 aid scheme, all other elements of the original approval decision of the European Commission remain unchanged' (para. 8, letter from the EC to Latvia, Brussels, 4.12.2013)
The potential trade distortions mentioned above therefore remain unchanged until 2019.
 
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
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AFFECTED SECTORS AND PRODUCTS

011 Cereals
1001 Wheat and meslin.
100199 Other
1002 Rye.
100290 Other
1003 Barley.
100390 Other
1008 Buckwheat, millet and canary seeds; other cereals.
100860 Triticale
014 Oilseeds & oleaginous fruits
1205 Rape or colza seeds, whether or not broken.
120510 Low erucic acid rape or colza seeds
019 Forage; natural rubber; living plants; raw vegetable materials
1211 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered.
121190 Other

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