Published: 2020-03-20 13:59:52 CET
Attīstības finanšu institūcija Altum
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Information on the impact of COVID-19 on activities of JSC Development Finance Institution Altum

Inside information, 2020-03-20 13:59 CET -- The existence of novel coronavirus (Covid-19) was confirmed in early 2020 and by now it has spread across the world, including Latvia, causing disruptions to businesses and economic activity.

As delegated by the government JSC Development Finance Institution Altum Group (hereinafter referred to as ALTUM) has engaged actively on an ad hoc basis in mitigation of the adverse impact that Covid-19 exerts on the businesses by drafting, in co-operation with the Ministry of Economics, two new state aid financial instruments. On 19 March 2020, having convened for an extraordinary meeting, the Cabinet of Ministers approved the regulations of the new financial instruments. Both financial instruments will become effective once co-ordinated with the European Commission.

The economic operators encountering situation-based difficulties with execution of the obligations undertaken at the credit institutions will be offered credit guarantees enabling the banks to postpone the principal amount payments for up to two years as well as attract a guarantee for the current financial services. The national budget funding of 50 million euro is available for implementation of the financial instrument that will make it possible for ALTUM to issue 240 million euro guarantees and for banks to restructure loans for the sum total of 715 million euro.

Meanwhile the companies struggling with substantial decrease in operations and therefore in need of liquidity support will have access to the working capital loans on relaxed terms. The total funding of the programme is 200 million euro with the national budget contributing 50 million euro and loan of the Treasury and international financial institutions - 150 million euro.

For the time being, following the recommendations of the competent authorities on the measures for containing spread of the coronavirus, ALTUM customer service centres are closed for visitors as of 13 March. ALTUM will continue to provide all the services remotely through the customers’ portal as well as telephone and video consultations.

As the situation is uncertain and rapidly evolving, we do not consider it practicable to provide a quantitative estimate of the potential impact of this outbreak on the Group.


JSC Development Finance Institution ALTUM is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to investment grade rating baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga. ALTUM was the winner of Stock Exchange Event of the Year award in Nasdaq Baltic Awards 2019.

         Laura Lapkovska
         JSC Development Finance Institution Altum Investors Relationships Division
         Tel.: +371 67774023, +371 26165699