RIGA, April 9 (Xinhua) -- Latvia has concluded an agreement with the Nordic Investment Bank (NIB) to receive a ten-year loan of 500 million euros, which the government intends to use to offset the impact from the COVID-19 pandemic, local media reported Thursday.
The Latvian government will use the loan to finance additional expenditure arising from the COVID-19 crisis, including measures to support employees, tax deferrals and rent cuts.
Measures are also being planned to stimulate the economy after the crisis with capital injections and additional incentives targeting the worst-hit business branches and SMEs.
The loaned money will also be spent on personal protective equipment (PPE) and medical equipment necessary to treat COVID-19 patients.
"The Latvian Government is working on a fiscal stimulus package and developing financial instruments to support business sectors with the largest and immediate needs. We have already done much, but the work to contain the virus and measures to cope with the consequences continues, therefore additional financing is needed and will be required," said Finance Minister Janis Reirs.
He also voiced resolve to closely monitor the allocation of these resources to make sure they provide real support to employers and employees during the time of crisis.
"The loan from NIB will finance the required support measures to the business activities in affected sectors in the forms of loans, capital injections or payment reliefs," said NIB President and CEO Henrik Normann.
The NIB, founded in the mid-1970s by the five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden, is playing a stabilizing role during the economic crisis.
