The EBRD in Latvia

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The EBRD has been investing in Latvia since 1992

In Latvia, we focus on supporting investments in energy security and energy efficiency, strengthening the financial sector and improving the competitiveness of the export sector.

A Latvian success story: how EBRD investment is helping SELFNAMED, an innovative self-service platform for eco-friendly white-label cosmetics, make a significant impact on the industry.

116

Number of projects to date

€1,176m

Cumulative EBRD investment

€1,140m

Cumulative disbursements

90%

Private sector share of portfolio

Number of active portfolio operations

€452m

Current portfolio of projects

€388m

Operating assets

43%

Equity share of portfolio

18 March 1992

Joined the EBRD

30,010

Capital subscription (€000)

EBRD Governor: Arvils Ašeradens
EBRD Alternate Governor: Līga Kļaviņa
EBRD Board Director: Jon Nicolaisen
EBRD Board Alternate Director: Mikko Autti

EBRD Shareholders information

In Latvia, we focus on supporting investments in energy security and energy efficiency, strengthening the financial sector and improving the competitiveness of the export sector.

Focus areas

Supporting investments in energy security and energy efficiency

The EBRD is focusing, in particular, on promoting and financing new renewable energy generation capacity and improving energy efficiency.

Strengthening the financial sector

The EBRD has played an important role in restructuring and turning around the systemically important Parex bank. Future engagement in the financial institutions sector will focus on strengthening financial-sector stability, as well as supporting credit recovery and developing private equity and mezzanine capital financing, particularly for small and medium-sized enterprises (SMEs).

Improving the competitiveness of the export sector

The EBRD is prioritising support for export-oriented firms, as well as for cross-border investments by Latvian companies elsewhere in the Bank's regions. We are paying particular attention to supporting investments designed to improve energy efficiency and further boost competitiveness.

Policy dialogue

We are conducting policy dialogue with the Latvian authorities on continued reforms in the financial sector in close cooperation with the European Commission. The EBRD is fostering the improvement of corporate governance in Latvia, particularly in unlisted and state-owned enterprises. In the public sector, policy dialogue is focused on improving procurement and increasing transparency. Efforts continue to encourage the development of public-private partnerships and supporting legislation, especially with regard to roads and other infrastructure.

As well as being a country where the EBRD works, Latvia is an EBRD donor

Latvia takes an active part in the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund and has contributed €85,000 for activities in war-torn Ukraine.

The EBRD’s latest country strategy for Latvia was adopted on 15 September 2021.

2.0%

EBRD forecast for Latvia’s real GDP growth in 2025

2.5%

EBRD forecast for Latvia's real GDP growth in 2026

Output contracted an estimated 0.3 per cent in 2024. This outcome was well short of the September forecast as exports and investment disappointed. Industry also underperformed, while wage growth remained high. In 2025 and 2026, a slowdown in wage growth and a rise in inflation are anticipated – the latter began to increase at the end of 2024, driven by higher food prices. In December 2024, inflation rose to 3.4 per cent, up from the 1.3 per cent average for the year. Investments, particularly those co-financed by EU funds, including from the Recovery and Resilience Facility, are expected to be the main driver of economic growth in the short term. Improving bank lending to both households and businesses is forecast to bolster consumption and investment. Passenger numbers at Riga Airport have recovered to pre-Covid levels, and maritime cargo has been performing well. The budget law envisages an increase in defence spending to 3.5 per cent of GDP in 2025, which is likely to increase imports and may weigh on the fiscal space available to finance social policies.

The economy is projected to grow by 2 per cent in 2025, accelerating to 2.5 per cent in 2026.

Latvia strategy and snapshot

Latvia private-sector diagnostic

PDF format / 4.08 MB

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Latvia strategy

PDF format / 0.90 MB

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Local language translation

PDF format / 1.02 MB

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Report on public comments

PDF format / 0.04 MB

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Latvia country snapshot

PDF format / 1.02 MB

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Contact the EBRD in Latvia

Head of Baltic States, Tomas Kairys

Address:

Lvivo Str. 21A Business Centre FLOW 20th Floor LT-09313, Vilnius, Lithuania

Telephone:

+370 52 638480

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The EBRD in Latvia

A Latvian success story: how EBRD investment is helping SELFNAMED, an innovative self-service platform for eco-friendly white-label cosmetics, make a significant impact on the industry.

Focus areas

Supporting investments in energy security and energy efficiency

Strengthening the financial sector

Improving the competitiveness of the export sector

Policy dialogue

As well as being a country where the EBRD works, Latvia is an EBRD donor

Latvia strategy and snapshot

Contact the EBRD in Latvia

The EBRD in Latvia

A Latvian success story: how EBRD investment is helping SELFNAMED, an innovative self-service platform for eco-friendly white-label cosmetics, make a significant impact on the industry.

Focus areas

Supporting investments in energy security and energy efficiency

Strengthening the financial sector

Improving the competitiveness of the export sector

Policy dialogue

As well as being a country where the EBRD works, Latvia is an EBRD donor

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