The Cabinet of Ministers approves the procedure for refinancing farmers' loan liabilities

The Cabinet of Ministers published two new regulations providing direct financial support to farmers in the official publication Latvijas Vēstnesis on August 27, 2026 (No. 164, OP 2026/164). These are Cabinet Regulation No. 505 “Procedure for Granting Loans to Primary Agricultural Production Producers for the Refinancing of Credit Liabilities” and Cabinet Regulation No. 506 “Procedure for Granting Loans with a Capital Grant to Agricultural and Other Economic Activity Operators in Rural Areas”.

Loans for Refinancing Credit Liabilities

Regulation No. 505 determines the procedure for granting loans to primary agricultural production producers for the refinancing of existing credit liabilities. The goal of the support is to ease the financial burden on farmers by allowing the restructuring of already incurred liabilities.

• Loans are intended for primary agricultural production producers.
• Funds are to be used for the refinancing of credit liabilities.

Loans with a Capital Grant in Rural Areas

Regulation No. 506 regulates the granting of loans with a capital grant to agricultural and other economic activity operators in rural areas. The capital grant reduces the principal amount of the loan, thereby reducing the overall repayment burden.

• Support recipients — agricultural and other economic activity operators.
• The activity must be carried out in rural areas.

Regulatory Context

Both documents were adopted within the Cabinet of Ministers and published in a single official publication along with other new regulations and orders, including amendments to the implementation regulations of the European Union cohesion policy and Recovery Fund programs. Publication in Latvijas Vēstnesis ensures the entry into force of the norms and public accessibility.

Significance for Farmers

The new procedures provide farmers with a clear and legal basis for receiving state support for both the refinancing of existing debts and the taking of new loans with a capital grant. This is a significant step in promoting the financial stability of rural farms and the development of rural areas.

Official source: Latvijas Vēstnesis, August 27, 2026 issue No. 164 (OP 2026/164) — Cabinet Regulation No. 505 and Cabinet Regulation No. 506.