The Central Finance and Contracting Agency (CFCA) was founded on December 15, 1997 as state administration institution – Central Finance and Contracting Unit (CFCU) – subordinated to the Ministry of Finance.

The CFCU was established based on the Memorandum of Understanding on the Establishment of the CFCU signed by the European Commission and the government of the Republic of Latvia on October 21, 1997. The Memorandum of Understanding foresaw development of so-called Decentralized Implementation System (DIS) for the programmes co-financed by the European Commission.

In fact this meant that Latvia had to gradually take over from the European Commission implementation of Phare programme and the CFCU was supposed to be the key institution in this process.

On January 1, 2004 the CFCU changed the legal status and became the state agency - Central Finance and Contracting Agency (CFCA).

Currently and in accordance with the Decree of the Cabinet of Ministers of October 24, 2003 No. 665 the CFCA is the state agency subordinated to the Ministry of Finance and ensures administration of the European Union (EU) pre-accession, structural and other financial instruments.

The mission of the Central Finance and Contracting Agency is efficient, effective, safe and compliant implementation of projects co-financed by, ERDF and other financial instruments.

The aim of the CFCA is to ensure safe, effective and transparent administration of the EU co-financed programmes.

[1] Phare programme, Transition Facility, Schengen Facility and EEA Financial Mechanism / Norwegian Financial Mechanism, Latvian - Swiss Cooperation Programme, Framework Programme on Solidarity and Management of Migration Flows.