Latviski English По-русски
Saturday 21.10.2017 | Name days: Severīns, Urzula

Economic Diary. Latvia 3rd week of 2012

(No Ratings Yet)

Amongst the events that transpired in the Economic life of Latvia in the period from the 16th to 20th of January, the following events are the most interesting:

Bank of Latvia bets on decrease

The Bank of Latvia (BL) has decreased the growth of GDP for 2012 from 2.5% to 1.3%. The decrease of the projection is due to the drop in external demand and as a result – the slowdown in the growth of export, – President of BL Ilmars Rimsevics explained.

Moreover, the Council of BL has decreased the norm for bank reserves by 1%. The norm for obligations for more than two years the norm is decreased from 3% to 2%, for every other norm from 5% to 4%. It is expected that the amount of money reserved by banks will decrease by approximately 153 million LVL. This decision was made based on the fact that, the inflations shows a tendency to decrease and does not threaten price stability. And bow, according to the BL, financial institutions can direct funds to companies as credits, and not keep that money frozen in accounts.

Population census results in Latvia makes specialists cry

According to preliminary data gathered and compiled since the population census of the 1st of March 2011 by the Central Statistical Bureau of Latvia (CSB), population count wa estimated to be 2 067 887 people. Before the publication of this data it was believed that 2 208 000 people live in the country. During 11 years that have passed since the population census of 2000, the number of people residing in Latvia has decreased by 13%, or 309 000. CSB believes that the reasons for this are natural death and migration of the populace.

The information published by the CSB became a reason for serious discussions. Demograph Ilmars Mezs believes that there is nothing to be happy about the fact that over 2 000 000 people live in Latvia. «If we do not solve the demographic problem, generation from now we should be happy about having 1 500 000 people living in Latvia, after that 1 000 000», – He states.

Swedbank Chief Economist Martins Kazaks is convinced that, the government should do everything they can so that country folk would move to large Latvian cities, instead of going abroad.

On the other hand the Ministry of Finance admitted that, the data from the population census show a very different picture, which is why the department is planning to review demographic projections that are fundamental to planning social budget in-depth.

Shareholder wars must be stopped

The Minister of Justice Gaidis Berzins plans to organize discussions with the goal to formulate new regulations of carrying out shareholder meetings in order to avoid any possible conflicts between enterprise co-owners. One of the most notable of such conflicts is the Ventbunkers transit enterprise, roster of both the Council and Board was changed a few times in a period of several days. The saddest fact is that, such wars tend to include not only a large number of lawyers, but government structures as well, such as the Registry of enterprises and Law enforcement.

Meanwhile it is suggested that the new regulation of carrying out full shareholder meetings, should include the rule that every member of the meeting should be approved by a sworn notary as well as a sworn bailiff should oversee the meeting. This way the Registry of enterprises, after receiving Minutes of the meeting authenticated with the signatures of a notary and a bailiff, can trust them more.

The right to recover debts will be charged

Companies that specialize in recovering debts will have to receive a special license. This is covered in amendments made to the Law of Taxes and Tolls, approved in the second hearing by the Finance-Budget Commission of Saeima.

According to the amendments, firms that specialize in recovering debts will need to receive a special license in order to function. The fee for this kind of license is 2500 restoration of the license will cost 1000 LVL.

The Ministry of Economy, where the amendments were developed, explained that the licensing of debt collectors is necessary for the cleanup in this business branch. Right now there is no full list of this market’s participants; the order of extrajudicial debt collection is not specified; and the protection of the rights of individuals from whom the debt is being collected is not ensured, as well as it is the reason for multiple complaints from citizens about the methods of how firms that specialize in recovering debts actually perform their functions.

A golf course will be built near Riga

About 30km from Riga, in Tinuzi area a golf course could soon be built. A corresponding application was sent to Territorial Council of Inskile by Ogres Golfa klubs partnership which rents the territory for the future golf course for 30 years from the Riga municipal enterprise of Rigas Mezi.

The arrangement provides for the settling of a golf course and any structure necessary for it, as well as cottages and guest houses.

Ogres Golfa klubs representative Maris Kurilovics said that, the project for the golf course has been worked on for two years now. 7 million EUR are planned to be invested in this project, construction works can commence after one and a half year.

It is expected that the new structure will get the attention of not only Latvian golf lovers but golf-tourists, which will be able to stay in the new complex for a few days.


Leave a reply

Professor: by taking money away from science, the state shoots itself in the foot

The matter regarding insufficient funding for science has recently become more topical in the public space. President of Latvian Academy of Sciences Ojārs Spārītis is rather critical of the situation: Latvia has lied to the European Union and European Commission about making sure that funding for science reaches 1.5% of GDP by 2020.

To prevent fraud, audit of MPC recipients to be performed in Latvia

Latvian Economy Ministry intends to perform an audit of mandatory procurement component recipients and use new regulations to combat fraudulent activities, as confirmed by Economy Minister Arvils Ašeradens.

Rail Baltic procurements to be processed using Electronic Procurements System

Following the changes to Latvian Republic’s Public Procurements Law, all new procurements for Rail Baltica administered by RB RAIL will be processed using a free electronic information system and its e-contest subsystem.

Estonian construction price index pushed up by wages

The construction price index in Estonia has in July-September of 2017 increased by 0.9% in comparison to second quarter this year and by 1.7% from July-September of 2016, Estonian statisticians have estimated.

Surplus of Latvia’s government budget reached 9.5 million euros in 2016

In 2016 general government budget surplus accounted for EUR 9.5 million or 0.04 % of the Gross Domestic Product, whereas general government consolidated gross debt amounted to EUR 10 091.6 million or 40.6 % of the GDP.

Latvia to invest EUR 5.9 million into formation of unified port network

Ports of Riga planning region and Kurzeme planning region have commenced an important tourism project. The goal of this project is creating a unified yacht port network in Latvia and Estonia with quality services that would allow developing sailing tourism and attract foreign sailing enthusiasts in the future, reports the regions’ representative Inese Ozoliņa.

Graft-suspected Tartu deputy mayors resign

In Estonia's second largest city, Tartu, Deputy Mayors Artjom Suvorov and Valvo Semilarski have stepped down from office, Estonian press reported, after the politicians were arrested under suspicion of graft.

Expert: workers of Latvia’s NGO sector have high ‘burnout’ risk

Workers of Latvia’s NGO sector have a high burnout risk, said once the director of Providus Dace Akule in an interview to Latvijas Radio.

Producer: many young people come to work in the film industry

Latvia’s film industry has been steadily growing these past several years, and it is especially gratifying that many young people are coming to work in the industry, says director and producer, representative of Film Angels Productions Jānis Kalējs.

Pollution blamed for every sixth premature death globally

Nine million premature deaths globally in 2015 are said to be related to pollution, a study has found pointing to presence of harmful matter in air, water and workplace as the three main risk factors.

Infectologist: influenza kills biologically the weakest, including children and pregnant women

Influenza is an infection that affects both children and adults. However, it kills those who are biologically weak, says Immunization State Council chairperson and infectologist of Children’s Vaccination Centre Dace Zavadska.

Investor activity made easier between Latvia and Vietnam

An intergovernmental agreement has been signed between the Republic of Latvia and Socialist Republic of Vietnam on prevention of double taxation and tax avoidance in relation to income tax.

Colder masses of air to enter Latvia in coming days; precipitation to be limited

Although high atmospheric pressure will be present above Latvia in the coming days, southern regions in Latvia will experience short-term precipitation on Saturday, 12 October, caused by the cyclone active above Poland. Colder masses of air will enter Latvia in the coming days.

Maltese journalist said to be killed by remotely-controlled explosive

Officials in Malta have unveiled it is assumed that investigative journalist Daphne Caruana Galizia was murdered by an explosive places under her car, which was detonated remotely.

Prime Minister: Latvia cannot accept additional asylum seekers

Latvia cannot afford to resettle additional asylum seekers, said Prime Minister Māris Kučinskis during his meeting with European Commission President Jean-Claude Juncker on Thursday, 19 October.

Scandinavians purchase tourism company in Lithuania; changes expected in Latvia too

Dutch Otravo online travel organization has expanded and has purchased Lithuanian online travel agency Interno Partneris, thereby entering the Baltic market.

Ombudsman: non-citizen status matter should be resolved in next decade

The next ten years may be the transition period to ‘put an end’ to the non-citizen status in Latvia, said ombudsman Juris Jansons in an interview to LTV programme Rīta panorama.

Swedish Foreign Minister: harassment exists at highest political level

The Foreign Affairs Minister of Sweden, Margot Wallström, has commended the current sexual assault and harassment awareness campaign in social media and urged to fellow politicians to address the problem.

Latvenergo recognized as Latvia’s most valuable company for tenth time

Latvenergo has been recognized as Latvia’s most valuable company in 2017. Its value grew 34% in comparison with 2016, according to the TOP 101 list of Latvia’s most valuable companies compiled by Prudentia and Nasdaq Riga.

Number of births and number of deaths decline in Latvia

During the first nine months of this year 15,723 babies were born in Latvia, which is 1,113 children fewer than in the corresponding period of the last year.

CC applies binding conditions for the sale of MTG Broadcasting AB

Latvian Competition Council has decided to permit Bite Lietuva to purchase MTG Broadcasting AB group’s businesses in Latvia. CC has applied several binding conditions to prevent a possible impact on competition on the television services and advertisement market.

Eesti Energia warns: Limiting CO2 emissions on capacity could endanger energy supply

Estonian energy giant Eesti Energia has evaluated that a plan under discussion in the European Union to introduce a carbon dioxide release limit for capacity mechanisms to qualify for subsidies could adversely affect the security of supply in Estonia and the Baltic states.

Solidarity tax norm recognized as non-compliant with Latvia’s Constitution

On Thursday, 19 October, the Constitutional Court of the Republic of Latvia declared the Solidarity tax norm as non-compliant with the country’s Constitution.

Survey: Riga residents go to the doctor’s the most often

34% of residents undergo regular health checks, according to Mana Aptieka & Apotheka health index. In addition, women are twice as serious about health checks as men.

LG cozies up with idea of rebuilding railway tracks to Reņģe, Latvia

Lithuania‘s Lietuvos Geležinkeliai has sent a mixed message as to what it intends to do next following an EC fine of nearly 28 million against it over the dismantling a 19-km railway stretch with the Latvian village of Rengė.