RIGA, March 18 (LETA) - During the first round of project assessment, the government today approved loans for 60 municipal investment projects meant to mitigate the consequences of the Covid-19 crisis.

According to Environmental Protection and Regional Development Minister Arturs Toms Pless (For Development/For), during the first assessment round today high-readiness projects were approved that would provide support for many Latvian local governments.

The projects will foster economic development and support businessmen to help them avoid layoffs and create new jobs.

A total of 67 investment projects from 25 local governments were reviewed today. 60 projects worth EUR 27 million were supported, and these projects will be provided EUR 22.5 million in loans.

In total, EUR 150 million is available in loans for municipal investment projects this year.

The minister's advisor Agnese Varpina told LETA that 46 projects of 21 local governments that the Cabinet approved today dealt with transport infrastructure development. Other projects envisage road and bridge construction or reconstruction, development of new municipal services, housing development projects, and others.

Local governments that apply for government loans have to take into account that the loan for an investment project may not exceed 70 percent of the project's total cost, while local government's co-financing must be at least 15 percent.

Last year, state loans worth EUR 99.6 million were issued to local governments to support 307 traffic infrastructure, energy efficiency and other investment projects.