bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 19.11.2017 | Name days: Liza, Līze, Elizabete, Betija
LatviaLatvia

AS Capitalia: Latvia lacks long-term planning on a national scale

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe government lacks long-term planning in its efforts to realize an economic policy to improve the situation in Latvia. A more stable tax policy is necessary in order to improve the business environment in the country, said Manager of AS Capitalia Juris Grišins in his interview to BNN.

The company now offers a new business service – Intelia credit rating. Intelia provides an individual solvency analysis for companies. Intelia reports can be used to assess customer solvency and appropriate loan rates in order to avoid losses caused by bad debts. This service was developed based on banking and finance institutions’ crediting methodology.

What are some of the most notable recent events in your sector?

Thanks to support form Latvian Guarantees Fund in July 2014, we have launched a new micro-crediting programme. Small and medium-size companies can use it to acquire financing notable cheaper. Considering banks’ relatively low interest when it comes to providing funds to small companies, the non-bank micro-crediting market is allowed to slowly develop on its own.

Can you say economic conditions are improving and there is a lot of potential for economic growth in the market?

Yes. The main market for small and micro enterprises is very regional and is based on domestic consumption. Considering the gradually growing purchasing power of local residents, small companies use every opportunity to develop, including by means of attracting additional funding for development.

How would you describe the government’s economy policy aimed at improving the economic situation in the country?

Considering my position to observe the process of planning support mechanisms in Latvia, I would say there is a lack of long-term planning on a national scale. I also believe there should be a more stable tax policy in order to improve the business environment. I also believe there should be a more liberal attitude towards involvement in the private sector.

How is the industry affected by Latvia’s policy? What changes to legislation would you like to see? What helps? What makes things more complicated?

In terms of improving the business environment, the country performs a number of positive measures. Unfortunately, there are also many negative ones. For example, increasing responsibility of Board members and increasing micro-enterprises tax only serve to reduce the interest of potential entrepreneurs to start a business. In the field of micro-crediting, on the other hand, the state realizes unreasonable and aggressive measures, such as introducing direct competition with private funding sector. This only serves to ruin the ecosystem of Latvia’s finance sector and increase ineffective use of state funds.

How would you describe the industry’s position in the Baltics? What about competition with Estonia and Lithuania?

Business micro-crediting is similarly developed in all three Baltic States. The only country to have the state be involved in micro-crediting is Latvia – with Altum. This, however, negatively impacts the private sector of this particular business field.

Specialized micro-crediting companies focus on situations when banking loans are not available for companies. This is a very small and specific niche. There is no competition with enterprises from neighbouring states, because micro-crediting is a very regional business.

What can you can call your ‘trump card’? What is your ‘Achilles’ heel’?

Our trump card is the fact that business micro-crediting is a new industry. It was formed in 2010. Micro-crediting companies have been present in Western countries and Eastern Europe for more than 20 years.

Our Achilles’ heel would be the fact that development of business micro-crediting depends on risk policies of commercial banks. If banks once again begin more aggressive crediting, as it was in 2007, the market share of non-bank crediting companies will notably decline.

Can you say there is a lack of skilled workers in Latvia?

No. Our industry has a large number of professionals.

What do you predict for the next five years? Will the situation in the industry improve, worsen or remain the same?

If we assume the tension between Russia and Ukraine is resolved successfully, there should not be any other notable signs of Latvia’s economy receiving any other nasty shocks. We believe the economic situation will continue to improve at the same rate as they do now.

Ref: 102.109.109.4367


Leave a reply

  1. Oddis says:

    Long term planning is in general lacking in Latvia among the population.

    Thumb up 0 Thumb down 0

NAF: Russia’s attitude remains unfriendly towards Latvia

So far Russia’s demonstrated attitude has remained unfriendly towards Latvia, said Commander of Latvian Armed Forces Leonīds Kalniņš in an interview to LNT.

Lembergs’ turn to testify before parliamentary committee has come

Aivars Lembergs, who is accused of serious crimes and is suspended from performing duties as chairman of Ventspils City Council, has been invited to come to a meeting of the Saeima’s Investigative Committee and answer questions associated with so-called oligarchs case.

How Latvian communities around the world plan to celebrate Latvia’s birthday?

«Celebration of independence of the Republic of Latvia is an important tradition that allows members of Latvia’s diaspora to maintain ties with their homeland – this year’s event will be even more expansive and inclusive than ever before. This is because events associated with the country’s hundredth birthday will be organized all around the world,» says manager of World Federation of Free Latvians office in Latvia Jānis Andersons.

European Parliament triggers punitive procedure against Poland

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

Wage rules violations most often associated with envelope wages

To promote public awareness and improve commercial environment, honest competition and honest compliance with taxes, Latvia’s State Revenue Service intends to expand its database with new information about taxpayers, BNN was told by SRS.

Management of Unity’s Saeima faction to change in December

«Political consultations with all of Unity’s partner parties that are represented in the Saeima’s faction have concluded. An agreement has been reached to perform management change before the end of Saeima’s autumn session – around 21 December,» says Unity’s chairman Arvils Ašeradens.

EP prepared to commence talks with EU governments on reforming asylum system

The European Parliament is prepared to commence talks about reforming Dublin Regulation to ensure every member state is able to resettle a portion of asylum seekers.

Estonia to pour into Finnish-Estonian cultural fund 700 000 euros

Estonian cabinet of ministers has decided to attribute 700,000 euros to the Finno-Estonian Cultural Fund, an organisation working since 2015 aimed at fostering cooperation between the two states in culture, creative economy and training both for individuals and organizations.

Russia in UN vetoes extension of Syrian chemical attack investigation

At the UN Security Council, Russia has used its veto powers to block a resolution with which it would be allowed to continue the international investigation into a chemical attack this spring in Syria, which prompted the U.S. to launch missile strikes on a Syrian airbase.

Latvia’s birthday expected to be windy

A precipitation zone will reach Latvia from the west on Friday, 17 November. The precipitation zone will, however, pass over Latvia quickly, making rainfall short and periods of clear sky more frequent and longer. Air temperature is expected to stay within +5° C… +8° C, as reported by State Environment, Geology and Meteorology Centre.

State of emergency in force in flood-hit Greece

Rescue services in Greece are looking for no less than five people, who have gone missing following unexpected and disastrous floods on Wednesday, November 15, that killed 15 people; however, bad weather is still expected.

Laupīšanas 101 director: Latvia’s film industry has yet to reach its potential height

There is sufficient evidence to prove that Latvia’s film industry is capable, but at the same time many films are directed basically the same way. There is a lack of creativity, which means very slow development for the industry, said Kaspars Marhlevičs, director of short comedy Laupīšanas 101, in an interview to BNN.

Medical cannabis bill paves way in Lithuanian legislature

Otherwise conservative Lithuania has made a big stride forward legalising cannabis for medical use with 92 Lithuanian parliamentarians voting Thursday, November 15, to open the bill draft on medication containing cannabis. The law draft should go back to the parliamentary floor for deliberations on December 12.

Latvian sentenced to ten years in prison for fighting on the side of ISIS in Syria

On Thursday, 16 November, Latvian citizen Mārtiņš Grīnbergs was sentenced by Riga Regional Court to ten years and three months in prison for fighting on the side of Islamic State terrorist organization.

European Parliament: Africa’s development requires a new stimulus

To resolve economic, social and migration-related problems, which usually accompany lasting crises, better African-EU cooperation is needed, European Parliament members say.

Latvian Chamber for Commerce and Industry proposes preventing new MPC reforms

Increase of mandatory procurement components cannot be allowed. Exactly the opposite – this cost should be dropped entirely for end electricity prices in an attempt to improve international competitiveness of companies, BNN was told by council members of Latvian Chamber for Commerce and Industry.

Matīss: LDz cannot raise tariffs and perform rail electrification under cargo anti-record

Because Latvijas dzelzceļš has set an anti-record in cargo transports in the first ten months of this year, Saeima deputy and member of the National Economy Committee Anrijs Matīss says raising the fee for the use of infrastructure cannot be allowed. He adds that the intended railway electrification project should be considered very carefully.

Lithuania and Latvia placed in top 10 in climate policy index

In the annual Climate Change Performance Index, where climate policy action in 57 countries has been evaluated, on a scale from «very high» to «very low», 11 EU member states have been evaluated with as having been highly active, with Sweden showing the best results ahead of Lithuania, the UK, Finland and Latvia.

Bite Latvija buys Stream Networks and Latnet

Mobile commutations operator Bite Latvija has signed a purchase agreement for 100% of shares of Stream Networks and its subsidiary Latner Serviss, as BNN was informed by Bite manager in Latvia Kaspars Buls.

airBaltic carried three million passengers in first ten months of 2017

In the first ten months of 2017, airBaltic carried a total of 3,007,034 passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East, BNN was told by the company.

Kaljulaid sees African opportunities to outplace EU in digitalisation

During a visit to Ethiopia, Estonian President Kersti Kaljulaid has discussed African-EU relations with the African Commissioner for Trade and Industry and recommended investing into digital development that would be beneficial for the continent itself.

Most employed people in Latvia are satisfied with their jobs

More and more often employers experience lack of qualified labour force, as well as increase of employees’ confidence about their competitiveness on the labour market and their openness for better job offers.

Estonian railways operator happy about increasing freight volume

Freight carried on the infrastructure of the Estonian state railway company Estonian Railways in October amounted to one million tons, which is a 10.4% hike compared to October 2016.

European Parliament: rule of law in Malta should be monitored more closely

Malta should strengthen the rule of law and the European Commission should follow the situation in the country more closely to ensure objective protection of rights, members of the European Parliament say.

Greece hit by sudden, disastrous floods

Towns in central Greece have suffered severe damages as unexpectedly heavy rain caused floods on Wednesday, November 15, taking the lives of no less than 15 people.

Newest comments