“Altum” Loans with Capital Discounts Now Available for Military and Agricultural Companies

Latvia’s business environment continues to evolve, with government support programmes becoming accessible to a wider range of companies.
On November 11, 2025, the Cabinet of Ministers decided to expand the scope of recipients eligible for Development Finance Institution “Altum” loans with a capital discount. From now on, these loans will also be available to militaryand agricultural companies.

This change marks an important step forward, enabling more industries to attract long-term investments and strengthen production, technology, and export capacity.

Supporting Strategically Important Industries

According to the government-approved amendments to the regulations on loans with a capital discount, the goal is to continue supporting large-scale investment projects, while also extending this support to primary agricultural production and military sector investments.

Military projects will require an endorsement from the Ministry of Defence, confirming that the project aligns with Latvia’s essential security interests — particularly those related to the production of weapons, ammunition, and military equipment.

The Ministry of Economics has emphasised that defence-sector projects will be assessed as a priority, giving them preferential access to funding if they meet the programme’s requirements. This will allow Latvia to implement key manufacturing and technology projects more quickly, strengthening the country’s defence industry and the resilience of supply chains.

Funding and Application Period

Currently, funding of EUR 57.54 million is being reallocated within the first, closed, and third application rounds.
For the fourth and subsequent rounds, the total planned programme funding amounts to EUR 67.04 million.

Applications for support will be open from November 20, 2025, to February 20, 2026.

How Loans with a Capital Discount Work

The support is provided by “Altum” in the form of loans with a capital discount.
A capital discount means that part or all of the loan’s principal amount can be reduced or written off if specific conditions or performance criteria are met.

The programme is open to companies with investment projects starting from EUR 10 million.
The capital discount can amount to up to 30% of the eligible project costs, but not more than EUR 10 million per project.

It is planned that, following these amendments, six to ten companies will receive support each year — including one to two projects in the agricultural sector and one to two military projects of strategic importance.

Results So Far

Since the launch of the programme, “Altum” has already approved 28 investment projects, with a total investment value of EUR 736.7 million.
The total amount of capital discounts granted has reached EUR 186.5 million.

These projects are expected to result in:

• Export growth of at least EUR 429.7 million per year,
• The creation of 1,345 new high-value jobs, and
• Research and development investments of at least EUR 18.9 million.

What This Means for Businesses

The expansion of this programme opens new opportunities for companies planning major investments in production, technology, or export capacity.
Agricultural businesses can modernise their operations, while the defence sector can develop strategically significant projects that contribute to national security and industrial growth.

As always, success depends on careful planning and strong financial preparation. The Oceans team can support companies with:

• Preparing financial documentation,
• Analysing investment projects, and
• Conducting compliance and risk assessments.

The expansion of “Altum”’s loan programme is a positive signal for Latvia’s business landscape — it shows that state support mechanisms are becoming more targeted, inclusive, and focused on high-value industries.

If you’re planning a large investment project or want to know whether your business qualifies for this programme, get in touch with the Oceans team — we’ll help you evaluate your options and prepare for a successful application.

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🔗 Source: LSM.lv article

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