Many companies will likely be forced to deal with debts and liquidity issues – one must act smart and early to keep the problems from snowballing. Advice to creditors: stop the snowballing effect Set a credit limit and ask for advance payments. First, take a good look at the credit limits you have set for […]
Organising shareholder meetings remotely Under the Law on Companies, a limited liability company may allow shareholders to attend the general meeting of shareholders and to vote by means of electronic communications. Although no official changes in legislation have yet been implemented in this field, on 7 April 2020 the Ministry of Economy and Innovation published […]
All three Baltic governments have set in place financial measures to help companies out of the crisis. The Estonian government adopted a short-term economic support package on 19 March 2020. In addition, new crisis measures were set in place in a supplementary budget for 2020 which was approved by the government on 28 April (subject to […]
In Latvia, state funds are channelled to support businesses through the state development finance institution ALTUM. State loans by the state development finance institution ALTUM Small, medium-sized and large enterprises facing financial difficulty due to COVID-19 spread may apply for loans to finance their working capital with subsidized/lower interest rates and decreased security requirements of […]
Suspension of creditors’ right to file for insolvency Under the Latvian Covid-19 Law, any creditor (including an employee or the tax administration) is precluded from filing an insolvency application against a debtor (legal person) until 1 September 2020. The moratorium applies to any creditor-debtor relationship and hence is not limited to any industry or to […]