bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 22.11.2017 | Name days: Aldis, Alfons, Aldris
LatviaLatvia

Contract on Citadele’s sale may be signed before the change of government

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe new Board of Latvian Privatization Agency may sign the contract on the sale of Citadele Bank before the change of government.

The newly appointed Chairman of the Board of PA Vladimir Loginov has told Latvijas Radio that the new Board may sign the contract November 5th.

Board member Girts Freibergs notes that he doubts «any possible attempts of any reasonable government to try and stop it». He said the main criterion in the signing of the contract will be its compliance with the government’s decision to sell Citadele.

Loginov also said he has been working on the sale of Citadele Bank since the state had taken over Parex Bank’s restructuring and the creation of Citadele in 2010. He wants to finish the deal. This is the reason why he agreed to become a member of the Board of PA. On top of that, the deal is close to the finish line and «it would be a shame to lose four years of work».

Loginov also reminded that the government has already decided to sell the bank. The investor has been selected a swell – a group of investors led by American Ripplewood Holdings. He revealed that the bank will not pay this year’s profits in dividends – it will remain in the bank. The price of the bank will depend on it. The current scenario provides for the state being paid EUR 74 million for 75% of shares of Citadele Bank.

Loginov admits the bank will be sold for a price that is smaller than its own capital. However, the situation is not beneficial for selling banks.

The contract also provides for a restriction to sell the bank in the next two years.

Freibergs notes that the bank will be sold after five or ten years. The bank also requires additional capital investments and development. Shareholders with experience will be forced to bring along their own money and business strategies in order to raise the bank’s worth.

In his interview to Panorāma programme of LTV, Freibergs admitted that he will be the person who will technically sign the contract. He notes that Latvia no longer looks all that attractive in the eyes of potential investors in Europe after the resignation of the last Board of PA. Reputation has been impacted, and the government needs to learn from this mistake.

The signing of the contract, according to Freibergs, «is a very reasonable risk and necessary action». He is still reviewing documents, but even now he has no doubts that the contract is ‘good and beneficial for the bank and all residents of Latvia’.

«I do not see a single reason why this contract cannot be signed. […] It is the right thing to do and there are no other options,» – says Freibergs.

Ref: 102.109.109.4898


Leave a reply

Study: taxes for business in Latvia – the most attractive among Baltic States

Latvia’s tax system is the most attractive among Baltic States and 13th most attractive among 190 countries of the world, according to the latest study performed by the World Bank and PricewaterhouseCoopers on tax systems around the world.

Turkish journalist punished with prison term for tweet

A court in Turkey has sentenced on Tuesday, November 21, a journalist from opposition newspaper Cumhuriyet to three years behind bars over accusations of spreading terrorist propaganda in relation to a post on Twitter, which had been briefly on the microblogging site this spring.

Latvia – 35th country in the world ICT development-wise

This year Latvia reached 35th place in the world in terms of development of information and communication technologies, as mentioned in the latest report by UN International Telecommunication Union.

Instant payment infrastructure comes online in Europe

On Tuesday, 21 November, instant payment infrastructure will be introduced across Europe. On top of that, European banks’ founded EBA Clearing will also introduce its RT1 instant payment system. The European-level solution has also been coordinated with the instant payment processing infrastructure prepared by the Bank of Latvia in August 2017, as reported by the bank.

Police dismantle criminal group that caused damage worth seven million euros to the state

Latvian State Revenue Service’s Finance Police dismantled a criminal group in November 2017. A total of 34 searches were performed and two people were found suspect. The criminal group performed tax avoidance and money laundering operations, causing damages worth nearly seven million euros to the state, BNN was informed by SRS.

Zariņš: deputies who vote for the state budget without amendments will have breached their vows

It is unacceptable for the Saeima coalition to follow the Cabinet of Ministers and like the Cabinet of Ministers breach laws during the budget approval process, says Saeima member Ivars Zariņš, adding that deputies who vote for the budget without amendments will thereby have to breach the vow they had previously made to the Latvian nation.

Estonia’s ruling Centre Party shows door to 31 competing members

The leadership of Estonia's Center Party has accepted the proposals of the party's local branches on fellow members, who ran in the Estonian municipal elections this autumn from a separate list, and expelled 31 members from the political party.

Pabriks: state interests should be held higher than party interests

Latvia cannot be allowed to drown in provincialism. It is in the country’s interest to maintain a course towards European and NATO values. In a situation when the number of centric and European-oriented parties is large, it is becoming harder and harder, because it leads to political fragmentation, and the main goal of it is reaching the 5% barrier during elections, not ensuring growth and development for Latvia, says MEP Artis Pabriks.

Reacting to e-commerce growth, Omniva rushes to expand its parcel locker network

Estonian state-owned postal company Eesti Post, which operates the Omniva brand, stated that it will broaden its network of parcel lockers expand its current parcel machines up until Christmas.

Programme: introduction of ‘honest’ taxi counters is stuck

Taxi drivers that had to replace their counters as far back as 15 October, continue delaying the process, as reported by De Factor with reference to State Revenue Service.

Ministry considers reorganizing Latvian Environmental Protection Fund’s administration

After reviewing information from the State Audit, Latvian Environmental Protection and Regional Development Ministry may consider the possibility of reforming the administration of the Latvian Environmental Protection Fund.

Uber to buy 24 000 self-driving Volvo XC90s

U.S. ride-sharing technology firm Uber has agreed with Chinese-owned Swedish carmaker Volvo on the purchase of up to 24,000 self-driving cars.

Snow expected in Latvia this week

Weather in Latvia will be cloudy at the beginning of the week and, although the sun may appear every now and then precipitation, precipitation is expected in most of the country. It will begin with rain and gradually move up to wet snow and snow, as reported by State Environment, Geology and Meteorology Centre.

Lengthy German coalition talks collapse

The German political parties that entered the country’s federal parliament after elections in September, still cannot reach an agreement on making a coalition and a majority government, but German Chancellor Angela Merkel has evaluated that new elections would be better than a minority government.

airBaltic carried more than 4,780 in flights between Riga and Liepaja

In the first six months since airBaltic has started performing regular domestic flights between Riga and Liapaja more than 4,780 passengers have been carried on this route.

Week in Lithuania. Lithuanian parliament passes Magnitsky act

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.

BNN summary of the week: medicinal cannabis in Lithuania, cargo anti-record, and Lemberg’s dwindling influence in UGF

BNN offers a summary of this week’s topical news in a variety of categories: Fight; Growth; Truth; Future and Opinion.

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.

Newest comments