Latvian gov't pledges €1b to support virus-hit enterprises

Latvia will commit up to one billion euros to support enterprises badly hit by the coronavirus pandemic, Prime Minister Krisjanis Karins announced Friday.

"We would provide this money as various financial instruments, not as grants," the prime minister said at a news conference following his meeting with the Latvian central bank's head Martins Kazaks and Finance Minister Janis Reirs.

The COVID-19-caused crisis is expected to be brief, Karins said, adding that growth is likely to resume after a month or two of economic slowdown.

The prime minister also believes that the current recession will not be as severe as the one Latvia saw during the financial crisis of 2008 and 2009.

"The loan guarantees will help those businesses that might briefly experience a turnover drop to weather these times," the prime minister said.