Cabinet of Ministers Regulations No. 501 in Riga, June 1, 2010 (pr. No 28 51) the annual State budget bill includes requests on behalf of the State guarantees, and rendered the provision of the guarantee and supervision order Issued in accordance with the law on budget and financial management 19.1 article and article 37 the second part i. General questions 1. determines: 1.1. procedures for ministries and other Central Government institutions include the annual national budget bill requests on behalf of the State the guarantee to be provided;
1.2. the order in which the Minister of Finance on behalf of the State shall provide a guarantee in accordance with the annual State budget act in the amount of the guarantee;
1.3. procedures for monitoring the implementation of the project and execution of the obligations guaranteed.
2. National behalf provide guarantees for student loans and student loans are included in the annual State budget bill, delivered and monitored in accordance with the provisions of Chapter VII.
3. The period laid down in the law on the annual national budget bill (Bill budget package) and medium-term macroeconomic development and fiscal policy framework development and submission, of the Ministry of finance determines the State guarantee provided on behalf (hereinafter undertaking) the maximum residue limit and inform the Ministry of industry. Sectoral ministries publish their website on the internet information on the possibilities to apply for guarantee and logon time.
II. Applicant login into the guarantee in the annual State budget bill 4. To log in to guarantee receipt of business support projects and public investment projects, Ministry of industry guarantee the applicant's published deadline set in the industry Ministry submitted the following documents: 4.1 application guarantee;
4.2. guarantee the applicant's statement that it does not qualify as a company in difficulty, in accordance with the European Community guidelines on State aid for rescuing and restructuring;
4.3. the business plan for the implementation of the project, which is intended for use galvojam credit. The project's business plan includes other project alternatives assessment and justification that the guarantee is non-rational support instrument for the implementation of the project;
4.4. information on planned security guarantee.
5. the Department shall assess the sector this provision in paragraph 4, the documents and project compliance with relevant sectoral ministries of development planning documents.
6. If pursuant to paragraph 4 of this rule the documents submitted and the project does not meet the Ministry's development planning documents, the industry Ministry of the project does not include the guarantee of applicants eligible projects list and notify the guarantee to the applicant within 10 days after the decision, giving the reasons for the refusal.
7. Ministry of industry guarantee supported applicants prepare list of projects (ordered for the implementation of the priority projects). Added to the list under this provision to paragraph 4 and the documents submitted to the Ministry of industry, the assessment of the project, including the project's impact on the State budget, with a separate indication of the impact on the economic development, the State budget revenue and expenditure. The industry Ministry this information within the time limits set out in the law on the annual national budget bill (Bill budget package) and medium-term macroeconomic development and fiscal policy framework development and submission, submit to the Ministry of finance.
8. Ministry of finance assesses the projects submitted, priority is determined by the following criteria: 8.1. credit risk;
8.2. the project's compliance with the approved development planning documents;
8.3. the implementation of the project's impact on the State budget.
9. The Ministry of Finance within the time limit laid down in the law on the annual national budget bill (Bill budget package) and medium-term macroeconomic development and fiscal policy framework development and submission, after the evaluation of the project pursuant to this provision 8. criteria referred to in paragraph shall draw up a list of projects to be supported in order of priority and to submit to the Cabinet of Ministers, adding this provision, paragraph 42, Ministry of education and science for information on studies and student lending for Government guarantee.
10. The Cabinet of Ministers approved the guarantee supported applicants potentially and the list of projects for issuing the guarantee, including the annual national budget bill.
III. Documentation and contracts 11. After the annual State budget law guarantee of entry into force of the applicants, which are included in the annual State budget law, tendering for a credit check. Before the invitation to tender in accordance with the regulations of the Ministry of finance and the Commission shall include the Ministry of finance representative. If the credit institution as a result of the contest is chosen, the guarantee the applicant will hold the repeated tender for selection of the credit institution.
12. After notification of the results of the tender the tenderer to guarantee financial year 1 September, submit to the Ministry of Finance: 12.1 to the draft treaty with the credit institution;
12.2. the updated rules referred to in paragraph 4;
12.3. contracts that are required for the implementation of the project (the letter of intent and other types of agreements with suppliers, customers and partners, if any is made);
12.4. the financial statements for the period between the last closed fiscal years and the last closed month (use the financial statement must not be older than two months);
12.5. certified auditor's opinion on the company business plan project quality according to international practice, the adopted valuation, financial analysis and modeling techniques, project feasibility, guarantees the applicant's financial situation and ability to repay the loan, as well as the galvojam of the project's commercial viability, estimated cost and revenue, based on the expected financial information;
12.6. the information about the guarantee of collateral (real estate or movable property) and a certified appraiser's estimate that the guarantee date of the application is not older than six months and that is real property or movable property to calculate the market value of the sales period to 12 months. Where such an assessment is not available, submit: 12.6.1. assessment for real estate, which is expected to be built using risky loans, with calculated market value realization period of up to 12 months after commissioning (must submit similar real estate assessment);
12.6.2. evaluation of movable property that is intended to be purchased using credit loans, with calculated market value realization period of up to 12 months (must submit similar real property assessment);
12.6.3. information about other security;
12.7. If a planned commercial project – credit institutions of a guarantee issued by the applicant's rating assessment, comparable to the international credit rating agency "Moody's Investors Service", "Standard" or "& Poor's Fitch Ratings ' long-term deposit rating specified.
13. guarantee the credit provided the worker pays the guarantee risk interest rate to five percent a year from the credit balance (from a credit institution, but received the outstanding features). The guarantee risk interest rate is determined by the Minister of finance after the guarantee document required to perform the evaluation, taking into account the following criteria: 8.1. guarantee security;
13.2 legal status;
13.3.;
13.4. profitability;
13.5. liquidity;
8.5. project risks;
8.5. credit history.
14. If the planned security is classified as commercial support, before these provisions referred to in paragraph 17, the adoption of the decision of the responsible sector Ministry shall submit to the Ministry of finance to the European Commission decision on the guarantee of compliance with the activities of the European Union Treaty.
15. If a planned commercial project, the worker pays the credit guarantee risk rate, the percentage of which is based on credit rating issued by the recipient of the loan assessment and the proposed provision (annex).
16. the guaranteed loan servicing credit pays workers a service charge according to the laws defined pay treasury services price list.
17. by document review the Minister of Finance shall decide on the provision of a guarantee or a refusal to provide the guarantee.
18. If the decision on the provision of a guarantee, the Minister of finance pursuant to the credit and the credit agreement concluded for credit workers and signed the contract of guarantee by a credit institution, and the Minister for finance and credit workers sign a contract for security, as well as the guarantee and supervision of service contract.
19. If the decision on the refusal to provide a guarantee, that decision, within 10 days after it has been taken forward to the Office of the applicant, stating the reasons for the refusal.
IV. Guarantee the basic conditions of service

20. The minimum amount of credit guaranteed commercial support for the implementation of the project is 2 000 000 lats. The minimum guaranteed amount of credit to government investment projects are not defined.
21. the annual national budget law contains guarantees can be provided on loan principal, interest and penalties for not timely payments, does not exceed the annual State budget act in the prescribed amount, but commercial support project, a guarantee can only be given as a credit amount or according to the European Commission's decision.
22. the maximum eligible loan repayment term is 30 years, counting from the day of conclusion of the contract of loan.
V. the State‐guaranteed loans 23. Guarantee the supervision contract for the duration of the credit institution on the first working day of each month, submit to the Ministry of finance in the following information for the previous month: 23.1. in the reporting period credit rates;
23.2. the worker's credit payments;
14.5. late payments;
14.5. credit balance.
24. The guarantee for the duration of the contract, the credit institution shall submit a single working day during the Ministry of finance information on what credit costs and the cost of credit to the appropriate rate.
25. The guarantee service and monitoring credit during the term of the contract, the worker shall submit the following information to the Ministry of Finance: 25.1. each year, before 30 April, July 31, October 31 and January 31 – balance sheet, income statement and cash flow statement for the three, six, nine or twelve months;
25.2. to receive the full credit each month on the first working day – information on the amounts of the credit institution paid, stating the date of receipt of credit, currency that received credit, and credit for part of the applicable interest rate. If the guarantee is issued for the full amount of the loan, in addition to the credit institution, indicate the amounts paid to the amount of the loans;
25.3. information on loans made to the worker a credit repayment of principal and interest (also payment identity document and a copy of the invoice), no later than three working days after the payment is made;
25.4. the information that the credit, in whole or in part, the workers will not be able to make any payment under a credit agreement, guarantee or guarantee service and monitoring contract, not later than 30 days before the payment is made;
25.5. supplementary information on the financial situation of credit workers (at the request of the Ministry of Finance);
6. information about any person in Court brought a claim against the credit of the relation of workers – immediately following receipt of such information;
25.7. information about the bankruptcy process if one is launched, immediately following receipt of such information.
26. workers must Credit all over the duration of the contract of guarantee to insure the security of the guarantee in favor of the Ministry of Finance according to the stated object of the insurer the insured value and the restoration of the insurance policy for the Ministry of finance.  
27. the worker is obliged to the guaranteed credit costs start to coordinate with the Ministry of finance project procurement contracts and submit to the Ministry of Finance of the co-financing of the project documents of the project business plan.
28. within 10 working days after the signing of the Treaty of guarantee (except where guarantee granted in this chapter VII procedure) Ministry of finance information for credit workers (name, registration number, address and the date of signature of the Treaty of guarantee) sends the procurement monitoring Bureau for inclusion in the principal register.
29. the worker is responsible for the implementation of the project and guaranteed credit according to the objective of the project. Credit worker all payments shall be made in good time in accordance with the contracts and payments made accurately reflects the accounting records, as well as financial and technical project lead for analytical purposes.
30. a credit institution after this provision in the agreement referred to in paragraph 27 of the date of receipt of the credit costs only billing in accordance with concluded agreements.
31. the suretyship contract period the Treasury guarantee card financial records, accounts and records of all financial obligations due to the contract of guarantee and guarantee service and monitoring contract.
32. To change the State‐guaranteed loan agreement, the loan to the borrower the changes to the prior approval of the Minister of finance. If a security classified as commercial support, changes to the industry Ministry in charge shall notify the European Commission under the control of business support the requirements of the law.
33. the amendments to the Treaty, guaranteed credit security contracts of guarantee and guarantee service and monitoring contract, the worker shall submit the credit to the Ministry of finance and the justification of amendment, this provision, 25.0 25.0 25.1 25.2., and the documents referred to.
34. by paragraph 33 of these rules the documentation referred to in the Minister of Finance shall decide to agree or disagree with the amendment to the credit agreement, the loans guarantee collateral agreements and guarantee servicing and monitoring the agreement.
35. If a decision to accept the amendment to the credit agreement, the guarantee of collateral agreements and guarantee service and monitoring contract, 10 days to inform the writing credit.
36. If a decision not to accept the amendment to the credit agreement, the guarantee of collateral agreements and guarantee service and monitoring agreement, decision 10 days written notice to the worker, indicating the reason for the refusal.
37. If the credit institution is done and workers are guaranteed the credit agreement amendments without the written consent of the Minister of finance, the guarantee will lapse.
38. Once a year until the end of the project, the worker shall submit the credit industry Ministry and the Finance Ministry a report on the implementation of the project. Two months after the end of the project, the worker shall submit the credit industry Ministry and the Finance Ministry in the project final report.
39. Six months after the end of the implementation of the project shall be submitted by the Ministry of industry in the Cabinet of Ministers a report on the execution of the project.
Vi. the State‐guaranteed loan pārkreditācij 40. to make guaranteed credit credit pārkreditācij, the worker shall submit the Finance Ministry: 24.9. pārkreditācij need for justification;
40.2. the financial statements for the period between the last closed fiscal years and the last closed month (use the financial statement must not be older than two months);
40.3. the purpose of the project business plan;
40.4. guarantee the market value of the collateral assessment (not older than six months);
25.2. certified auditor's opinion on the company business plan project quality according to international practice, the adopted valuation, financial analysis and modeling techniques, project opportunities, credit, the financial position of the workers and the ability to repay the State‐guaranteed loans, as well as the commercial viability of the project, estimated cost and revenue, based on the financial information of the planned inspection.
41. the Minister of Finance within 20 days after this provision referred to in paragraph 40 of document evaluation decides the State‐guaranteed loan pārkreditācij or refusal to pārkreditē risky credit.
VII. National behalf provide guarantees for student loans and student loans 42. Two weeks before the provisions referred to in paragraph 3 of the medium-term macroeconomic development and fiscal policy framework development by the Ministry of education and science, Ministry of finance submitted for study and student lending to State guarantees, adding to the grounds (the estimated number of students going to study and student loans, estimated the amount of credit per student as in previous years, the State issued guarantee performance trends). The Ministry of finance the required amount of the State guarantee after evaluation of these provisions be inserted in paragraph 3 that the maximum residue limit guarantee.
43. The guarantee credit for student commitment according to the regulations on the procedures is given, and pay off student loans and delete the student loan from credit institution funds on behalf of the State guarantee provided by the Minister of education and Science approved the credit summary list of employees receiving the Ministry of finance.
44. The Ministry of education and science workers ' credit summary list indicating the following information: 44.1. credit industry;
44.2. credit amount;
44.3. the guarantor (an individual's name, social security number, or the name of a municipality and the taxpayer registration number), or information about the pledge (specify the name of the securities, and the market value for real estate – market value).
45. After the credit summary list of workers receiving Minister of finance signed a contract with a credit guarantee and surety services agreement to be concluded between the Ministry of finance, the Ministry of education and science and the credit institution.

46. a credit institution administers the credit and outstanding credit, if credit or the guarantor – a natural person or the municipality, after the credit agreement for credit from credit institutions means Government guarantee the deadline dispute refunded not willingly credit amount, including: 46.1. application submitted to the Court and pay all the costs;
46.2. requests and receives run article in court;
46.3. the bailiff enforcement submitted article;
46.4. If the bailiff in accordance with regulations issued by the Executive article back once a year, the credit institution, the repeated execution of bailiff enforcement article;
28.9. submit quarterly Treasury information about recovery operations carried out, indicating the date of execution issued by the article, the date when the Executive article submitted to the bailiff, the date when the bailiff in accordance with regulations issued by the Executive of the article back to the credit institution, the Executive writes back the cause of the issue and the date of the execution of the article repeatedly submitted to the bailiff for recovery activities.
VIII. Closing questions 47. Be declared unenforceable in Cabinet the July 12, 2005 Regulations No 513 "guarantee and supervision arrangements" (Latvian journal, 2005, 111 no).
48. the guarantee to be provided, the maximum residue limit for 2011 Ministry of finance determined in accordance with the Cabinet of Ministers of 22 February 2010. order No. 91 "On measures to ensure State budget fiscal 2011 and 2012, and the Bill" on the State budget for 2011 "preparation" annex 3 paragraph 1 of the medium-term macroeconomic development and fiscal policy framework for 2011-2013, as well as inform the industry Ministry for further evaluation of the guarantee and of the priority list for the submission of the draft law "on State budget for 2011".
Prime Minister v. dombrovsky Finance Minister e. Repše annex Cabinet 1 June 2010 Regulation No. 501 of the Risk rate guaranteed loan reserve base points no PO box
Rating category of low to medium high 1.
Strong (AA-A) 60 75 100 2.
Good (BBB) 75 100 220 3.
Satisfactory (BB) 100 220 400 4.
Weak (B) 220 400 650 5.
Bad/financial difficulties (CCC and lower) 400 650 1000 Finance Minister e. Morgan