After the boom years when annual economic growth stood at around 10%, Latvia’s economy collapsed in 2008 under the effects of the global economic and financial crisis. The country’s economic output fell by 18% in 2009, more dramatically than in any other EU member state. The unemployment rate rose tremendously and in 2010 reached just under 20%.

In order to counter this development, Switzerland provides CHF 7.48 million for a microcredit programme in Latvia. Under the programme the state-owned development bank Hipoteku Banka will issue about 650 microcredits.

The project agreement was signed on 21 June 2011 by Gabriela Nützi Sulpizio, Swiss Ambassadress to Latvia and Aleksandrs Antonovs, Head of the National Coordination Unit and Deputy State Secretary at the Latvian Ministry of Finance.