bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 20.06.2018 | Name days: Rasa, Rasma, Maira
LatviaLatvia

Bank of Latvia: 2014 will be Latvia's only chance to achieve good publicity in EU

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

During the post-crisis period, Latvia’s economy changed significantly and became healthier. It is no longer based on consumption. Instead, it is now more focused on opportunities on the export markets, notes Bank of Latvia economist Igor Kasyanov.

“It means that investments have a larger role in those Latvian industries that are involved in international trade. Creation of new jobs is directly dependent on industrial success. In the last two years, Latvia’s industries experienced a rapid increase, sometimes the growth was unexplainable,” – says the economist.

He adds that the industrial output increase is dictated by two factors – supply and demand. “While everything is more or less clear about demand – the crisis in Europe forces Latvian producers to be active and innovative, creating new products and seeking new trade partners – it is a lot harder with supply. Many areas of industry and specific enterprises are already hard at work to ensure their maximum production output. They are hypothetically able to take in more people and expand activities, but this creates problems. In order to employ new workers, enterprises need to provide working quarters and machinery. Enterprise co-funding indexes are not always successful enough to secure new equipment or attract bank funding. This creates a situation of a paradox – entrepreneurs are ready to export more, hire new workers, but are unable to find funding for their investment projects,” – explains the bank expert.

According to him, the inflow of direct investments from abroad improves not only the activity of capital, but also knowledge, technology circulation, as well as global logistical hubs of investments. 2014 will be a one-in-a-lifetime opportunity for Latvia to achieve good publicity in Europe. Reminding everyone of our existence and our advantages is one of the most important foreign investment attraction factors. Euro adoption is not likely to be the main factor in investment attraction. Nevertheless, its significance should not be underrated.

“The is not doubt that Euro adoption will make potential investors look at Latvia in a different way. Firstly, it is a wonderful way to remind everyone in Europe about Latvia’s existence. Even though we have been part of the EU for ten years, most foreign businessmen, investors, development funds and other market players do now know anything about us. Secondly, Euro adoption is, in a way, a seal of approval. Thirdly, previous experience shows that a country experiences an increase of investor interest after Euro adoption. A different question is whether or not the Euro adoption potential will be used to its full potential,” – says Kasyanov.

Kasyanov adds that it became known that Estonia had a significant investment potential increase one year prior to Euro adoption. Investment potential values nearly doubled in the year of Euro adoption.

“In addition to the aforementioned, it should be remembered that Latvia’s processing industry is closely linked to the procurement of raw materials. Payments are made in Euro, not Lats. Therefore, the flow of money entrepreneurs can invest in production development and worker remuneration is reduced. Competitiveness of Latvian entrepreneurs, when compared with their European counterparts, also reduces. From this we can conclude that Euro adoption will mean a lot for investments and better business opportunities with foreign partners. This will allow Latvia develop its production and create new jobs,” – concludes the economist.

Ref: 102.109.109.5697


Leave a reply

Doctors unjustifiably charged fees for services worth 255,000 last year

Last year, authorities found that medical institutions that provide state budget-financed healthcare services had charged fees for services worth EUR 254,994, according to data compiled by Health Inspectorate.

Budget Committee picks Swedbank economist for Bank of Latvia Council

On Tuesday, 19 June, Saeima’s Budget and Finance Committee unanimously decided to submit to the Saeima a decision project regarding approval of Mārtiņš Kazāks for the post of member of the council of the Bank of Latvia, as confirmed by Saeima’s press-service.

Farmers Saeima proposes declaring state of emergency in Latvia’s agriculture sector

Farmers Saeima association has sent a letter to Latvia’s State Chancellery, Agriculture Ministry, Finance Ministry and Latvian Association of Local and Regional Governments, detailing a request addressed to the Cabinet of Ministers and Saeima to declare a state of emergency in the country’s agriculture sector because of the lasting drought.

IT specialist’s lawyers appeal client's arrest in recent restaurant case

Lawyers of Edgars Štrombergs, who is the accused party in the Vairāk saules restaurant cash register data manipulation case, have appealed the security measure applied to him, as confirmed by sworn attorney Mareks Halturins.

Russian and Belarusian arms control experts hosted by Lithuania

Russian and Belarusian arms control inspectors have been hosted by Lithuania as NATO forces trained across the Baltic states and Poland in exercise Saber Strike 2018.

Latvia’s ports suffer freight volume decline in first five months of 2018

Latvian ports handled 27.072 million tonnes of freight in the first five months of this year, which is 7.5% less when compared to the same period of last year, according to data compiled by Transport Ministry.

Bicycle rickshaws in Tallinn will need safety belts from July

Seeking to regulate the provision of bicycle rickshaw services in the Estonian capital, the Tallinn City Council has is to more particular bicycle rickshaw regulations that would align the services closer to car taxis.

158 election sites to open in Riga during next Saeima elections

A total of 158 election sites are planned to be opened in Riga for this autumn’s Saeima elections, as confirmed by documents prepared by Riga City Council.

30% of Latvian residents are dissatisfied with their family’s financial state

Residents’ overall mood has declined considerably across all survey positions. Residents have become the most negative about Latvia’s economic situation – 31% of them believe it has worsened. When asked to voice their outlooks for Latvia’s economy in a year from now, 17% of respondents said it will have improved, according to results of Baltic International Bank’s latest Latvian Barometer.

Apple fined 5 million euros for customer rights violations in Australia

A court in Australia has ruled that U.S. tech firm Apple has to pay a fine of 5.7 million euros refusing to repair iPhones and iPads that had been serviced by third parties as those actions breached consumer law.

Latvian coalition still torn about attracting highly-qualified guest workers

Because of differences in opinions among ministries, Latvia’s government is unlikely to support and view the proposal to ease the issue of EU blue card to highly-qualified guest workers without appropriate higher education, says Prime Minister Māris Kučinskis.

Corruption watchdog requests criminal prosecution of Bank of Latvia head

Latvia’s Corruption Prevention and Combating Bureau has sent materials of a criminal case to the prosecutor’s office with a request to commence criminal prosecution of Bank of Latvia governor Ilmārs Rimšēvičs and businessman Māris Martinsons.

Riga City Council votes to add Vidzeme market to Riga Central Market’s capital

Riga City Council’s City Property Development Committee has voted in favour of adding Vidzeme Market to AS Riga Central Market’s capital. Opposition members voted against this during the meeting.

Police dismantle criminal group specialising in storage and transportation of excise goods

Officers of Latvia’s State Revenue Service discovered a suspicious shipment during a routine inspection of a vehicle at Riga Passenger Port. With help from State Police, officers found more than 2.3 million illegal cigarettes and 960 litres of spirit, as confirmed by police.

airBaltic receives its ninth Bombardier CS300 aircraft

On 17 June, Latvia’s airBaltic airline received its ninth Bombardier CS300 aircraft. The airline plans to expand its existing aircraft fleet with 14 CS300 aircraft before the end of the year.

Employment agency invites employers to apply for new job support programme

Employers will be able to apply for participation in a programme of the European Social Fund to help create subsidized jobs for unemployed people. Eighteen offices of Latvia’s State Employment Agency will be offering registration until 27 June.

Programme: government continues working on MPC plan’s cancellation

The disproportionate mandatory procurement component costs have become one of the biggest political scandals in Latvia since autumn last year. Attempts to put an end to the MPC system are continuing alongside the search of those responsible for the dysfunctional system. The government’s work group say it is impossible to completely cancel the system, as reported by Nekā Personīga programme.

De Facto: ABLV Bank’s self-liquidation – controlled or not so much?

«Controlled self-liquidation» – this is the undefined procedure Finance and Capital Market Commission has picked for ABLV Bank. This decision came after three months of document assessment, discussions with politicians and active media campaigns, as noted by De Facto journalists.

Latvia police investigate link between murdered insolvency administrator and missing businessman

Latvia’s State Police have begun an investigation of a possible link between the murdered insolvency administrator Mārtiņš Bunkus and the missing businessman Andris Bojārs, as confirmed by police representative Ilze Jurēvica.

Hundreds of migrants rejected in Italy allowed to leave ships in Spain

Migrants taken on rescue ships in the Mediterranean Sea and turned away by Italy and Malta have arrived in Spain's port of Valencia as three ships arrived in the harbour, including the Aquarius, which rescued the 630 migrants the week before.

Monday expected to be exceptionally hot in Latvia

Cool masses of air will flow into Latvia at the beginning of the week. Wind speed will increase as well. Several rain-cloud zones will pass through the country. Monday is expected to be the hottest day of this week in Latvia, as air temperature will likely reach +23° C… +26° C in most of the country. South-east regions of Latvia may even experience air temperature of +29° C.

Week in Lithuania. Lithuanian Railways joins European train system Interrail

Lithuanian state railway company Lietuvos Geležinkeliai has joined Interrail, a European train system that allows passengers to buy cheaper tickets for train travel across Europe.

Zolitūde tragedy lawyer criticises Latvian laws as favourable to insolvency administrators, not business owners

Outspoken Latvian lawyer, Aldis Gobzems, who defends in civil trials the victims of the Zolitūde supermarket collapse, where 54 people died and dozens suffered injuries, has joined the KPV LV party for the parliamentary election and is pointing to perceived political support to a few successful insolvency administrators.

Eurozone simulation with monthly billions to be quit in 2018

The European Central Bank has stated it would quit end its massive programme to stimulate the eurozone economy by buying bonds for 30 billion euros each month in December.

Human traffickers in Hungary sent to prison for 71 people dead in meat truck

For the deaths of 71 migrants, who suffocated in a sealed meat truck in Hungary in August 2015, a Hungarian court has sentenced four men to 25-year jail terms after finding them guilty of people-smuggling.