20.9 Million Euro will be Allocated to Increase the International Competitiveness of Latvia in the Field of Tourism

Starting from Monday, the Investment and Development Agency of Latvia (LIAA) begins to conclude the contracts to provide support in the framework of the project “Promoting of the International Competitiveness of Latvia in the Field of Tourism”.

As reported by the LIAA, available funding amounts to 20.958 million euro, aid intensity - 80%. Applications will be accepted until December 31, 2023.

Representatives of the tourism industry can receive support to participate in international exhibitions, carry out presentations or demonstrations of stands at international conferences and seminars related to tourism.

Support measures may be provided if the product is offered in the priority sectors of tourism and meets the relevant criteria, such as business tourism, wellness tourism.

The merchants may qualify for the support meeting the status of conducting of micro, small and medium business, the societies, where at least five merchants came together or cooperative societies, as well as the societies, if the number of founders includes at least five merchants or cooperative societies.

The cost support in the framework of the program is provided from September 1, 2015, but supporting documents should be submitted until July 31 of this year. With regard to activities carried out after May 1 this year, the documents must be submitted no later than within hree months after their completion.

Microsoft Invented the “Infinite USB Flash Drive”

The Microsoft Corporation found a way to create a data storage device that can store a virtually unlimited amount of information for any long period, reports The Next Web.

The storage of new type will be based on 10 millions of long oligonucleotides with DNA molecules. The company Twist Bioscience was a provider of “material”.

According to the representatives of Microsoft, only 20 grams of molecules allow you recording all digital data generated to date on such a “USB flash drive”. Thus, they can be read even after several thousand years.

Coding of information in the new drives will be carried out using not two bits, but four ones. Nucleotides will act as bits - A, C, T and G.

The Next Web points out that the cost of technologies required to work with the DNA has declined substantially in recent years. So, in 2003, in order to decipher the human genome consisting of about three billion nucleotides in length, the researchers spent more than a billion dollars on research. Now, reading the DNA is about a thousand dollars, the newspaper writes.

46.3 Million Euro from the Swiss Cooperation Program was Invested in the Latvian Economics

46.3 million euro from the Swiss Cooperation Program was invested in the Latvian economics, according to the Ministry of Finance.

On Thursday, the 8^th annual meeting in the framework of cooperation of Latvia and Switzerland was held in the Ministry of Finance. The participants acknowledged that Latvia has successfully managed to achieve and even exceed the planned results. 46.3 million euro or 89% of available funding under the program was invested in the national economy of Latvia. Swiss experts highly evaluated post-project supervision in Latvia, noting that it could serve as an example for other recipient countries of Swiss co-financing.

Financing from the Program of cooperation with Switzerland in the amount of nearly 49 million euro is available from 2007 in Latvia. 12 projects in such areas as regional development, the modernization of vessels, improvement of the environment, support of the private sector and the NGO sector, education and research, financial sector regulation and access to finance were implemented with the support of the program in Latvia.

Latvia is consistently ranked among the leaders among 12 beneficiary countries of the Swiss co-financing, said the Ministry of Finance.

The decision related to the next stage of Cooperation program of Latvia and Switzerland can be made in the second half of 2017 as a result of the positive outcome of the negotiations between the Swiss Government and the European Commission.

German Investors Expect to Increase the Turnover in Latvia This Year

This year, German investors expect to increase the turnover in Latvia and every second company working in the country with German capital expects growth in export, according to a survey of the German-Baltic Chamber of Commerce in Lithuania, Latvia and Estonia (AHK).

According to the Executive Director and Member of the Board of AHK Florian Schroeder, 1097 enterprises with German capital are currently registered in Latvia, but the most important investment fields are mechanical engineering, woodworking and metalworking. The German capital is included in such enterprises as AKG Thermotechnik Lettland, Valmieras stikla šķiedra, Zieglera mašīnbūve, Rettenmeier Baltic Timber, Kurzemes Atslēga-1.

According to the words of Schroeder, the general mood of German investors has become more positive. A year earlier, the biggest fear was associated with geopolitical events in the world, especially in Russia, but now the mood has improved and investors are hoping for positive development of the business.

“Of course, the Russian embargo and the fall of the rouble affected all types of businesses, but the Germans are pragmatic and never focus on business only in one country, but other markets are found instead of Russia”, said Schroeder.

65% of the enterprises surveyed predict a positive development of business this year, but two-thirds expect to increase turnover, and it is for 22 percentage points more than last year.

The number of enterprises that rely on the positive development of exports has doubled compared to last year, and the result is better than in Latvia and Lithuania.

Also, respondents expressed growing appreciation of business environment in Latvia compared with other countries in Central and Eastern Europe. Latvia takes the second place among the 20 most attractive countries for investors, and only Estonia was rated even higher.

At the same time, there are aspects that have not improved in comparison with 2015, in particular, the transparency of the building tenders and qualification of workers. A third of respondents are dissatisfied with vocational education system in Latvia.

A Number of Events for the Development of Economic Cooperation between Latvia and Belarus will be Held This Year

This year, a number of events for the development of economic cooperation between Latvia and Belarus will be held, as reported in the Ministry of Economics.

The Minister of Economics Arvils Ašeradens discussed topical issues of bilateral economic cooperation and the events scheduled for this year with the Ambassador of Belarus in Latvia Marina Dolgopolova on Friday.

Ašeradens expressed his satisfaction related to active economic dialogue and cooperation between Latvia and Belarus, as well as in connection with the abolition of EU trade restrictions in regard to Belarus, which would be a significant turning point in the expansion of bilateral economic cooperation.

Latvia cooperates with Belarus in the field of trade, transit and logistics, tourism, light industry, etc. Prerequisites for successful cooperation include geographic proximity and extensive contacts of businessmen, as well as different formats of cooperation - the Belarus-Latvia Intergovernmental Commission, the Latvia-Belarus Business Cooperation Council, the Latvian foreign trade representation in Belarus.

The Minister welcomed the plans of Belarus to strengthen bilateral economic cooperation, proposing to extend it also to the field of information and communication technologies, education and science, energy efficiency.

During the meeting, they discussed the possibility to hold the Latvian-Belarusian business forum in Riga in the autumn and the Ambassador offered include the areas such as transport and logistics, IT, trading in the commodity exchange, finance and loans.

In the autumn, the Days of Latvia in Belarus will be organized. This year, it is planned to organize a number of trade missions to Belarus for Latvian companies working in the fields of transport, tourism, engineering and health. It is scheduled to hold the 12^thmeeting of the Belarus-Latvia Intergovernmental Commission on economic, scientific and technical cooperation issues in Belarus.

Belarus takes the fourth place among the foreign trade partners of Latvia outside the EU - after Russia, China and Switzerland. In 2015, trade volume between the two countries amounted to 522.4 million euro – for 7.6% less than in 2014. Latvia has a negative balance of trade in goods and services with Belarus.

According to the data of LLC “Lursoft”, there are 2263 enterprises with Belarusian capital working in Latvia. According to the Bank of Latvia, the Belarusian direct investment in Latvia amounted to 25.3 million euro, while the Latvian in Belarus - 50.9 million euro at the end of 2015.

„Statoil”: the SRS Becomes More Friendly to Entrepreneurs

The company “Statoil Fuel&Retail Latvia” positively evaluates the work of the State Revenue Service (SRS), because there are several fields, in which the SRS became much friendly to entrepreneurs, said the Executive Director of “Statoil Fuel&Retail Latvia” Gunta Jekabsone.

The improvements relate to, for example, submission of electronic documents, communications, risk analysis, the assessment of which companies should be subject to in-depth audit.

“I think that the SRS copes with its tasks. In recent years, the trend is positive", said Jekabsone.

“Good initiative is the White List. The benefits are small, but the administrative burden for those who are in this list is great. It is rather a question of prestige. But it is also a step forward in cooperation with honest businessmen. I hope the following steps will be taken”, said a businesswoman.

The Companies from Lithuania and Estonia Lead in the List of the Largest Companies of the Baltic States

The retail companies dominate in Latvia in the list of 500 largest companies, industrial companies in Lithuania have no equal competitors, but Estonians are strong with shipping companies growing at the expense of the Latvian side, according to a study conducted by the Lithuanian business newspaper Verslo zinios together with the Latvian Dienas bizness and Estonian one Aripaev.

In the hands of the five largest companies, such as Orlen Lietuva, Maxima LT, Ericsson Eesti, Uralchem Trading and Tallink Grupp is concentrated 10% of the total turnover of the 500 largest companies, but the 50 largest enterprises of the region concentrate at about 30% of the revenues of all companies from the list, according to the results of 2014.

Exactly half of the sales give trade sector companies in Latvia. In Lithuania, contribution of that sector is 40%, in Estonia - 44%. Particularly brightly are distinguished industrial enterprises in Lithuania, whose total income amounted to a substantial share of total revenues in 2014 - 35%. In Latvia, the share of sales in this sector was 12%, in Estonia - 19%.

The Court Found the Latvian Bank “Trasta komercbanka” to be Liquidated

The Riga Vidzeme District Court decided to admit the JSC “Trasta komercbanka” to be liquidated on Monday.

A sworn attorney Ilmars Krums is appointed by the bank to be the liquidator of the bank. The verdict of the court is final and not subject to appeal.

While the appeal of revocation of a license is not considered by the bank, the court, liquidating the bank, artificially deprives it of the opportunity to implement its rights, said the representative of “Trasta komercbanka” Christa Kreizberga-Neya in the court. She reiterated that the liquidation of the bank “cuts off” many things, provided for by legal acts of the EU.

The representative of the Financial and Capital Market Commission (FCMC) Ieva Berroni explained that we are talking about the terms in this process - even if the proceedings on the liquidation of the bank would be postponed, the bank has been revoked the license already, so the process cannot be stopped.

The second representative of the FCMC added in the court that the case of liquidation of the bank should be continued and there is no reason to delay it as long as the rights of the bank are not restricted.

As indicated by Berroni, the bank liquidation process is primary aimed at the return of its assets and leaving of “Trasta komercbanka” out of the market will not have a material negative effect on the stability of the Latvian financial sector.

The bank representative said that a national court cannot make a decision, as the Latvian laws are not harmonized with EU standards.

The representative of the FCMC previously explained to the court that the revocation of the bank license is thoughtful and carefully considered decision. Liquidation of the bank was asked to start as soon as possible by the FCMC, so that you can begin to meet the needs of investors.

In her turn, the representative of the bank said that the decision of the European Central Bank provides the possibility to dispute it, and this right is guaranteed by legislative acts of the European Union.

As it was previously reported, the Riga Vidzeme District Court began to examine the case of the beginning of the liquidation process of “Trasta komercbanka” at the request of the FCMC.

As reported, the European Central Bank annulled the license of “Trasta komercbanka” at the request of the FCMC on March 3.

“Trasta komercbankа” has been working since 1989. The Group has its representations in Russia, Ukraine, Kazakhstan, Tajikistan, Azerbaijan and a branch in Cyprus. Igor Buimisters owns from 33% to 50% of the bank's shares, Ivan Fursin (indirectly) - from 20% to 33%.

Statoil: Estonians More Often Buy Fuel in Latvia

According to Statoil, the Estonians more often buy fuel in Latvia due to the difference in the prices.

Prices for gasoline and diesel fuel in Latvia are lower than in Estonia and Lithuania, said director of production of Statoil Fuel & Retail Latvia Armands Zubulis. The price of diesel fuel in Latvia is for more than 10 cents cheaper compared with Estonia, he added.

According to the data of Statoil, more and more Estonians visit petrol stations in Latvia, especially those ones located in the area of Latvian-Estonian border.

According to the European Commission data the price of gasoline in Latvia was the fourth one last year, but the price of diesel fuel - the second lowest in the EU.

Housing Affordability has Increased in the Capitals of the Three Baltic States

Housing affordability of dwelling has increased in the capitals of the three Baltic States in the IV quarter of 2015 according to the last Housing Affordability Index prepared by Swedbank.

Housing Affordability Index has increased by 4.7 points - up to 160.1 points in Riga, in Tallinn - by 4.2 points, up to 153.4 points, in Vilnius – by 4 points, to 129.2 points in the IV quarter of 2015 in comparison with the IV quarter of 2014.

“It means that household income exceeded the required ones for 60.1% in Riga in the IV quarter of 2015 in order to afford an apartment in accordance with the established norms and thus mortgage payments would not exceed 30% of net income”, - explains Swedbank.

Interest rates on mortgage loans in Estonia and Lithuania were down slightly, but in Latvia – increased in the IV quarter of 2015.

The time required for the accumulation of funds to make a first instalment in the amount of 15 per cent on a mortgage was a month and a week less than a year earlier constituting of 24.6 months in Riga in the IV quarter of 2015. In Tallinn, it decreased by about three weeks - to 28.5 months, in Vilnius – by a month, to 36.8 months.

In the terms of the sum assets, Swedbank is the largest in Latvia.

Latvia is Planning to Sign an Agreement on Accession to the OECD in Early June

Overproduction of Wheat is Expected in the World this Year

The global market has faced overproduction of wheat against the backdrop of growth in production over the last 5 years, as well as high carry-over stocks of grain products in the current season.

This was announced by a senior editor of the grain department of information agency Platts Andre Agapi, speaking at an international conference Middle East Grain Congress in the United Arab Emirates.

“Growth in production of wheat in many key countries exporting wheat is observed in 2015/2016. In particular, the gross harvest of grain was increased by Ukraine - to 27.5 million tons against 24.5 million tons in a previous season, Russia - up to 61 (59.1) million tonnes, the United States - to 55.8 (55.1) million tonnes, Australia - to 24.2 (23.1) million tonnes and the EU countries - to 149.5 (149.1) million tonnes”, said an expert.

Also, the analyst estimated the export potential of wheat in some key countries until the end of 2015/2016. Thus, according to A. Agapi Ukraine can supply to foreign markets about 7.4 million tons of grain production within 4.5 months remaining before the end of the season. For Russia, this figure is 5.8 million tons, for the EU countries - 12.5 million tonnes, for the United States - 8.1 million tons.

Separately A. Agapi focused his attention on India. “In the current season in India, there is a decrease of gross harvest of wheat by 7 million tons – up to 89 million tons. Thus, the country can switch from the exporters to its importers and depending on the decision on the further functioning of the 25% duty on wheat import, may import from 1 to 4 million tons of grain”, said the analyst.

At the same time, A. Agapi said that Australia will become a potential key supplier of wheat to India.

In Latvia, the grain is still one of the most important groups of export goods. In 2015, Latvia sold 1.79 million tonnes of wheat and wheat-rye mixture at foreign markets, which is 416 thousand tons or 30.2% more than the year before.

The Latvians are Buying More Expensive Products with the Increase of Purchasing Power

Riga City Council and Swedbank will Support Novice Entrepreneurs in the Framework of the Grant Programme Take-Off 

Riga City Council and Swedbank will sign an agreement on the implementation of the grant programme Atspēriens (Take-Off) for the fifteenth time in a row in the first half of 2016 in order to promote the development of small and medium entrepreneurships in the capital.

Entrepreneurs can get up to 15 000 euro this year to support of one innovative business idea. Applications for grants will be accepted until March 21.

Signing of the agreement on the implementation of the programme in 2016 will take place on Thursday, February 18 at 1.00 pm attended by the Chairman of Riga City Council Nil Ushakov, head of Swedbank Maris Mancinskis and Member of the Board of the company Certes Technologies Agnis Kalnins. The signing of the agreement will take place in premises of the company Certes Technologies at the address Mukusalas Street 41b-8.

This company became the winner of the programme in 2014, receiving a grant for the production of teaching audio systems for schools. After the signing ceremony, the representatives of Certes Technologies will introduce the process of production of their audio systems to the participants.

Since 2009, 126 business ideas have been supported in the framework of the programme Take-Off of total almost a million euro. This year, the grant programme will offer not only financial support for the winners, but also new knowledge available on the free seminars on topics relevant to entrepreneurs.

Birthday of the Bar “Barschevsky & Partners”

We are really glad to wish many happy returns of the day to our colleagues – the Bar “Barschevsky & Partners”! We wish prosperity and harmony, the goals to be achieved and wishes to come true!

Happy birthday, friends!

Former Vice-President of Latvenergo was Fined for Nearly 50000 Euro

Riga District Court, considering one of the cases of bribery of officials of Latvenergo, sentenced the former vice-president of the company Aigars Melko and the head of Energy Consulting Andrey Livanovich to fines, but the technical director of production of Latvenergo Gunars Tsvetkovs was acquitted.

Melko has to pay a fine in the amount of 48.1 thousand euro, but Livanovich - 37 thousand euro. The court has reclassified accusations - Melko is convicted for taking unauthorized benefits, but Livanovich for commercial bribery. The complete sentence will be available on January 25 and it can be appealed within 10 days.

The court also decided that against the company of Livanovich Energy Consulting will be applied measures of forced exposure in the amount of 400 minimum salaries or 148.000 euro.

The bribe was given for the fact that the best proposal would have the company Alstom Power Sweden AB in the tender of Latvenergo related to the reconstruction of hydroelectric units of the Plavinas Hydroelectric Power Station. The total amount of the bribe amounted to 627 thousand euro.

Decrease in Oil Prices Contributed to the Profit of Lithuanian Companies

Lithuanian companies engaged in non-financial activities received 3.31 billion euro of pre-tax profit in the first nine months of this year, while the profit was 2.79 billion euro in 2014, but in the pre-crisis year of 2007 – 3.13 billion euro according to the Department of Statistics. As economists say, profit has increased due to the decrease of energy resource prices, as written by a business daily Verslo žinios on Wednesday.

The Chief analyst at DNB Bank Indra Ganite-Pikchene said that the general macroeconomic trends are extremely bad this year, but deflation has helped the companies, as energy resources have dropped in price.

“Financial situation of Lithuanian companies is very good and maybe even too good this year. Record large liquid assets and undivided profits show that the companies are not able to successfully “employ” the profit; they lack ideas. Money is not be returned to shareholders and not invested”, said the Chief analyst of Swedbank Nerijus Machiulis.

The Biggest Tax Debtors Owe Latvia Over 245 Million Euro

100 biggest tax debtors have owed Latvia a total of 245.107.000 euro at the beginning of December 2015 - 1% less than at the beginning of November, according to the State Revenue Service (SRS).

Including debt of 36 physical and legal persons exceeds 2 million euro, it is for one person more than at the beginning of November.

A private person Yevgeny Yakovlev has been considering to be the leader of the list of debtors for a long time – his debt increased to 19.16 million euro to the beginning of December. The second place takes the company Asiva with its debt in the amount of 9.705 million euro, the third one - AVT Nafta with 8.839 million euro.

A private person Vadim Mitrofanov with his debt in the amount of 8.804 million euro is the next one according to the amount of debt, the company Krаsainie lеjumi with 8.474 million euro, the company Bebriko Ltd (former KMM Metаls) with 8.182 million euro, Eco Tyre Baltics with 7.689 million euro, Baltic lumber products with 5.467 million euro, Future vision with 5.129 million euro and the company East-West Transit with the debt in the amount of 4.041 million euro closes the top ten of tax debtors.

100 biggest tax debtors have owed Latvia a total of 247.64 million euro at the beginning of November 2015.

“Rigas udens” Will Auction Property Located on Murjanu Street

The company “Rigas udens” will auction property located in Riga, on 70 Murjanu Street on January 21, as reported by "The Latvian Herald".

The lot consists of a plot of land, water treatment plant, transformer substation, etc. Starting price is 625.000 euro.

“Nordea Bank” Raised its Forecast of the GDP Growth in Latvia for 2015 up to 2.4%

Another Fast Food Giant “Pizza Hut” Will Start its Work in Latvia

Opening of another fast food giant “Pizza Hut” is planned in Latvia in the first quarter of next year, reported a representative of the company Vitaly Zhiauga.

More detailed information about the location and opening date will be available closer to the establishment`s opening day, according to his words.

We remind that Pizza Hut is a restaurant chain, consisting of more than 34 thousand outlets in 100 countries of the world. Pizza Hut is included in a corporation Yum! Brands. The same corporation owns the brand “Kentucky Fried Chicken” (KFC), one of the establishments of which was opened in Riga on August 28 of this year.

It is planned to spend more than a million euro to open both establishments according to the owner of franchises of Pizza Hut and KFC in the Baltic States Sigurd Arnar Sigursson.

Baltic Logistic Solutions Will Establish Logistic Centre in Each of the Baltic States

The logistic company Baltic Logistic Solutions (BLS), which is the part of the Sanitex Group, expanded the warehouse complex in Riga this year, planning to complete construction of its own warehouse in Estonia next year, because if you want to compete in this segment, it is important to take care of your own infrastructure, investing in quality a lot, the business paper Verslo žinios reported on Monday about the plans of BLS.

The complex in Riga was built this summer, where one of the warehouses is provided for the storage of frozen products, the other one for dry products which require cool temperature. In Estonia, the warehouse will be intended to store products requiring different temperatures. While it is believed that pre-investment in Estonia will amount to about 12 million euro. Also, it is discussed the possible further development in Riga.

“We see Latvia as the central tracks of warehouse of the Baltic Sea, Riga is convenient for distribution of imported goods to the markets of all Baltic States. Estonia, in its turn, is more intended for the local market, but as yet few products go from North to South”, said a member of the board of Sanitex and Baltic Logistic Solutions in Latvia Yovaras Pilkёnis.

Turnover of the Lithuanian capital of the company Sanitex which began its activity in 1992 reached 249.057 million euro, profit - 1.881 million euro last year.

Latvia's Export Remained at Last Year's Level

Latvia is the only state among the EU countries, which export remained at last year's level in January-September according to data released on Friday by the EU statistics department Eurostat.

The volume of export decreased in four countries during this period, including Lithuania for more than in anyone else - by 6%, in Estonia - by 3%.

In its turn, 23 countries increased the volume of export, including most of all Cyprus – by 23%, Ireland - 20%, as well as the United Kingdom and Croatia – by 11%.

Import increased compared to nine months of the last year in 21 countries in January-September most of all - to Ireland (+14%), Malta (+11%) and the UK (+9%).

The volume of import decreased to 7 countries: in Greece - by 11%, Finland - 8%, Estonia - 5%, Cyprus - 4%, Belgium - by 2%, Latvia and Lithuania - 1%.

The Share Residents in Equity Capital of Latvian Banks Has Reduced

The share of residents in paid-up capital of Latvian banks decreased by 5.4 percentage points in the first nine months of 2015 - to 14.1% of the total share capital of banks, was reported to the agency BNS in the Financial and Capital Market Commission.

The paid-up capital of Latvian banks amounted to 2.068 billion euro at the end of September 2015, including the shares owned by residents of 291.719 million euro, or 14.1% (at the end of 2014 – 19.5%), to non-residents – 1.777 billion euro, or 85.9% (at the end of 2014 – 80.5%).

The paid-up capital of Latvian banks increased by 29.993 million euro (1.5%), including the share of residents has decreased by 105.42 million euro (26.5%), of non-residents has increased by 135.413 million euro (8.3%) in the first nine months of this year.

The share of Sweden in the share capital of Latvian banks amounted to 1.088 billion euro (52.6%), of Norway – 191.178 million euro (9.2%), the USA – 87.116 million euro (4.2%), Russia – 74.606 million euro (3.6%), the Great Britain – 70.943 million euro (3.4%), Ukraine – 69.746 million euro (3.4%), Malta – 47.111 million euro (2.3%), Switzerland – 44.155 million euro (2.1%), Luxembourg – 30.967 million euro (1.5%), Cyprus – 29.604 million euro (1.4%), Estonia – 3.465 million euro (0.2%), Iceland – 3.096 million euro (0.1%), the Netherlands – 1.531 million euro (0.1%) in late June.

There are 27 banks operating in Latvia, including 10 branches of foreign banks.

Latvia takes the 40^th Place in the Index of Welfare

Estonia takes the 31^st, Latvia – the 40^th, Lithuania – the 41^st place out of 142 countries in the world in the traditional Index of Welfare.

The London-based Institute Legatum annually makes ranking, taking into account the economic situation of the country, the situation in the sphere of education, health, quality of state control and safety of citizens.

Among the EU, the Baltic States got a better estimate than Croatia (53^rd place), Bulgaria (51^st place), Romania (50^th), Greece (49^th), Hungary (45^th). Neighbouring Russia has got the 58th position, while Belarus – the 63^rd.

Like last year, the first place in the ranking took Norway.

Forecast. Soon the Latvian Economics will be the Fastest Growing in the Baltic States

The Fish Processors Resumed the Work, Dramatically Reducing Capacity

The Government will make Tax Discount to the Poultry Plant Kekava in the Amount of 3.7 Million for Investments

The government is planning to give a discount of Enterprise Income Tax (EIT) to the largest Latvian producer of poultry Putnu fabrika Kekava in the amount of 3.69 million euro in connection with investments made by the company in the modernization accordingly to the agenda of the government meeting on October 13.

The amendments to the law providing the restoration of discounts on EIT for initial long-term investments made as part of a supported investment project came into force from January 1, 2011 to speed up the recovery of the economics by attracting investments to Latvia as specified in summary to the project of the appropriate order by the Ministry of Economics.

This regulation is valid until December 31, 2020. It provides discounts to taxpayers who have made investments in fixed assets used for their business activities in the supported priority fields and aimed to create new business locations, increasing of production capacity or services, launch of the new products not previously been produced by the taxpayer, or a substantial change in production process.

A discount of 25% is provided, if the total initial amount of long-term investments does not exceed 50 million euro, when it exceeds 50 million euro, the discount will be 15%.

The Ministry of Economics indicated that the application has been received for receiving of the status of the investment project “General Modernization of the Poultry Plant Kekava” in May, 2015. It is planned to invest 14.97 million euro (attributable costs 14.76 million euro) in the framework of the project; thus, the company will be entitled to the EIT discount in the amount of 3.69 million euro after the implementation of the project. The term of the project is 36 months at the beginning of June 2015.

“The additional taxes paid to the state budget will exceed the initially applied discount of 3.69 million euro already in the year of the project completion (in 2019), taking into account growth of the total turnover and increase of the paid taxes planned by the company”, said in the summary.

Also, the Ministry of Economics informed the government on the projected impact over the national economy of the investment project, as well as the financial calculations provided in the business plan of the company, but this information is restricted.

The government will consider the issue behind closed doors.

As previously reported by BNS, the turnover of Putnu fabrika Kekava amounted to 40.811 million euro, profit of 1.05 million euro in the last fiscal year, which lasted from July 1, 2014 to June 30, 2015. According to the company`s data, Putnu fabrika Kekava released 18.6 tons of products in 2014.

Putnu fabrika Kekava, which is engaged in processing of poultry, began work in 1974. It produces more than 65% of total poultry in Latvia by being the company of a full production cycle and growing of chickens. In total, the company produces more than 240 different products.

The Ministry of Economics is going to Establish Order in the Funeral Industry

Estonia, Sweden, Latvia and Finland will be Engaged in Joint Export of Medical Technologies

The Tallinn Industrial Park Tehnopol opens the project of development of business in the field of medical technologies CH Health Access, in the framework of which companies from Estonia, Finland, Sweden and Latvia will jointly bring out medical technologies to new markets, based on common experience.

“The project brings together clusters of health protection of all four countries, based on the experience of which we will help enterprises to launch sales in new markets. Each cluster chose a distant market, where there is already a good partner, which has already formed working relationship, but the companies of a cluster already conducted primary sales”, delivered the press release words of the initiator of the project and director of Tehnopol of the medical technologies Külli Tärno.

Finnish cluster BioTurku will open a fast-growing South Korean market to others, Tehnopol and Latvian Enixus will base on their relationship with the USA (in Silicon Valley and Pennsylvania, respectively). Tartu Biopark will rely on its experience of the Indian market, but the Swedish medical technology cluster will help to enter the market in Uganda.

The project CH Health Access will be valid for 3 years, where 17-22 enterprises for each market will be selected in the region during this period. The programs focused on South Korea and the USA will start in the first quarter of 2016, but in May of the same year – the programs focused on India and Uganda.

The leading partner of the project CH Health Access is the Tallinn Industrial Park Tehnopol. Project partners are Tartu Biotechnology Park, Turusk Science Park, Enixus Baltics Latvia and cluster Swedish Medtech. The project is funded by the Central Baltic Interreg program.