In 2025, the European Investment Bank (EIB) Group increased its financing for Latvia to a record €381 million, marking a significant step in the country’s green transition, infrastructure modernization, and support for households and businesses. The year also saw the opening of the EIB Group’s first office in Riga, strengthening partnerships with government authorities, financial intermediaries, and companies across Latvia.
The EIB Group’s financing represented 0.9% of Latvia’s GDP and helped mobilize total investments of around €1.3 billion, equivalent to 2.9% of GDP or €682 per person. Over the past five years, annual EIB Group financing for Latvia has averaged €195 million, highlighting Latvia as one of the largest per-capita beneficiaries relative to the size of its economy. The European Investment Fund (EIF), part of the EIB Group, also contributed to expanding financial access for Latvian businesses and households.
Green investments dominated the 2025 portfolio, accounting for nearly 90% of operations. Energy and infrastructure projects were a priority, including a €200 million EIB loan to Latvenergo to modernize the electricity-distribution network for 1.9 million customers and prepare the grid for renewable energy integration. Additionally, a €35.2 million facility for Sunly will develop four solar parks with a total capacity of 329 MW, powering up to 180,000 households. In the water sector, a €70 million loan to Rīgas ūdens will upgrade the capital’s network and reduce losses.
Security and resilience also received focus, with EIB advisory support for Latvia’s first defence public-private partnership, contributing to new military infrastructure in Selonia and Kuldīga. The EIB Group’s support for small and medium-sized enterprises (SMEs), households, farmers, and exporters was facilitated through EIF-backed initiatives, including agreements with Citadele Bank, BluOr Bank, Industra Bank, and Altum, as well as a guarantee with LANDE for collateral-free loans. In total, around 1,400 SMEs and Mid-Caps benefited, sustaining nearly 13,000 jobs.
Looking ahead, the EIB Group aims to deepen its support for affordable housing, innovation, security and defence, and enhanced financial access for small businesses in Latvia. The 2025 financing reinforces the EIB Group’s role in promoting sustainable development, resilience, and inclusive economic growth across the country.
