Tax revenues are the key source of finance for the government’s budget. The state administration redistributes and allocates tax revenues for performing the state’s basic functions in order to ensure the overall development of the country and its population’s wellbeing. The availability of credit resources declined owing to the global crisis 2007-2009, which negatively affected the growth of Latvia’s national economy, and the total tax revenue decreased by 26.80% in 2009 compared with 2008. Latvia’s government, to secure the financing of its budget, stabilise Latvia’s financial system, raise the country’s competitiveness, borrowed in foreign financial markets EUR 4.5 billion. The present research examined Latvia’s economic development and tax collection dynamics after Latvia’s restoration of independence and its accession to the European Union and assessed the effects of the global crisis on the solvency of enterprises and tax revenues and how Latvia contributed to the foundation of new enterprises and the improvement of the business environment. Research methods employed: the monographic method was used to examine, assess and analyse literatures and legal acts, describing findings and interpretations; statistical observation, compilation and grouping of information, calculation of statistical data, analysis of causal relationships and data generalisation; logical analysis and synthesis. The graphic method was employed to show the relationships identified and their nature and form. The logical and constructive methods were used in analysing results and making judgements. The present research found that the insolvency of companies significantly affects the tax collection process and reduces total tax revenues. In 2013, a tax debt of EUR 267.59 mln was written off in Latvia because tax payers were liquidated, while in 2014 taxes totalling EUR 1 263.63 will not be potentially collected. The authors presume that research on the effects of company insolvency on tax revenues has to be continued in order to improve tax collection and design tax policy instruments aimed at restoring the solvency of enterprises facing problems.

To achieve the objectives set out in National Rural Development Strategy Plan, conditions and activities consistent with utilization of Community’s and Latvia’s financial resources will be laid down in Latvia’s Rural Development Program – single for the whole country. Under the Rural development Programme priority will be given to the projects which will to higher degree promote the attainment of the objectives of the strategy. From 2007 to 2013 about EUR 900 million of EU funding will be available for Latvia for agriculture and rural development activities. A program for securing agriculture and rural development loans for 2007-2013 will be one of the tools that will ensure successful uptaking appropriations of the European Union Funds for rural development for the next programming period. The Rural Support Service controls the effective use of financial resources and monitors risk factors under the contracts concluded in compliance with the EU Regulations. The terms of project implementation and records are verified on the spot on the project implementation site by selecting enterprises in order of financial importance and other risk factors.

Competition among banks is stiff in this field (mortgage loans), where everyone wants to offer clients more favourable terms and conditions, thus gaining the largest market share. However, the credit terms and conditions can vary considerably, given the purpose of credit and the collateral. The world uses different assessment methods for a borrower’s evaluation. Particular attention is paid to the borrower's credibility and additional creditworthiness by collecting, processing and evaluating important information on the credit applicant. This research work is based on theoretical knowledge in economics, legal documents and statistical data analyses to investigate mortgage lending by Latvian commercial banks, the potential risks, the solvency assessment models, including the scoring system (the system’s role in mortgage lending practised by Latvian commercial banks), and to develop proposals for the system improvement. In the paper, the authors give insight into the creditworthiness analysis model – Credit Scoring –, the Latvian mortgage credit market, different loan terms and conditions provided by Latvian commercial banks and lending development impacts and describe the essence of the scoring system and the way how Latvian commercial banks use the system. The new provisions of 2016 in the Consumer Rights Protection Law regarding requesting complete information allow considerably enhancing the loan scoring system of commercial banks in compliance with Directive 2014/17/EU of the European Parliament and of the Council of 4 February on credit agreements for consumers relating to residential immovable property.