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

Economic Diary. Latvia 5th week of 2012

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

This week Latvian government demonstrated typical helplessness in solving serious problems in business and economy. But they were aroused with small time home labor.

The poor locksmith

The Competition Council fined the Latvian Locksmith Brotherhood 500 LVL for developing a unified service price list. According to the department, this price list reduces the competition between members of the brotherhood even if the recommended prices are not applied in service cost calculations.

Explanation as follows. You come to receive a duplicate of you key and you were charged, say, 0.5 LVL and not 1 LVL as recommended in the price list. So, the Council believes that there is a price conspiracy, even though the locksmith sold you his services for a cheaper price and you are the one who benefited from it.

Latvian Locksmith Brotherhood has only 30 members; however, the Council managed to find time and research this complicated case thereby using up taxpayer money. Apparently the organization has nothing better to do.

The example of the work done by the French Antimonopoly department is just asking to be mentioned. This department managed to fine thirteen leading perfumery companies 40 million EUR for a price conspiracy. Among the fined companies are: Chanel, Christian Dior, L’Oreal, Clinique, Estee Lauder, Jean-Paul Gaultier, Issey Miyake, Clarins Fragrance Group, Hermes, Guerlain, LVMH Fragrance Brands, Sisheido Europe and Yves saint Laurent. The fine was issued to the Sephora, Marionnaud and Nocibe distribution networks. Every company has to pay from 90 thousand to 4.1 million EUR, depending on the period of membership in the cartel. The companies made deals with retail merchants thereby creating a fixed price and the amount of the maximum possible discount from 1997 to 2000, to support retail prices on a maximum possible level, French Antimonopoly department states.

They’ll grab us by the…wallets, again

On the other hand our Saeima deputies have been busy this week. They introduced amendments to several Laws right in the first hearing.

Amendments to the Law of State Revenue Service widen the authority of SRS in cases of collecting taxes, duties and fines abroad, so that Latvian residents – individuals and legal persons – would not rest knowing that – SRS has a long reach.

Also the parliamentarians supported amendments to the Law of Taxes and Duties specifically the parts linked to cash transactions. From now on legal persons will need to declare all cash transactions worth more than 1000 LVL, even if they were made by individuals. Previously the threshold sum was 3000 LVL. Furthermore the maximum sum of a cash transaction is decreased from 10 to 5 thousand LVL. During the week Saeima deputies also managed to approve the new Law of Credit Registry. The Registry started its work on January 1st 2008, and databases from the registry of debtors are the foundation. The new normative act will not change the credit registry in fact – the information about debtors, their guarantors, sum amounts etc. will still be generalized there. However, in the future access to some parts of this data will be restricted. This way the information about amounts of losses, supply costs, accounting methods of debt obligations, their classification, and quality assessment, amount of savings, main sum and interest rates will only be available to use by the Financial and Market Commission and Latvijas Banka. On the other hand registry members – credit institutions, commercial societies which provide financial services linked to credit risks, savings and insurance societies – will only have access to information that is linked to them. But the debtor and his guarantees will not be able to access this information.

Who says «meow» first?

This event can be considered as no less than a breakthrough in public relationships. Especially if we recall the story about Latvijas Krajbanka collapse, and the panic surrounding Swedbank. The Financial sector development Council has conceptually approved the two level Crisis situation communication plan. If one of the financial sector members has problems, the Finance market and Capital Commission will be the first to respond. It will relay firsthand information to the media, perform first monitoring operations and respond to the consumers’ panic. If the situation does not does not stabilize, the second level of communications will be activated, using which the Prime-minister and ministers can send calming statements to the public. This, according to the plan’s developers, should bring clarity to the process of communications with society and rule out any inter-department discussions about who should be the first to go out to the public and give a speech.

European Commission defends Palink

Palink trade enterprise insolvency, which operates Iki and Cento trade networks in Latvia, has gotten the attention of European Commission Vice-president Vivien Reding and EU internal market commissar Michel Barnier. They wrote a letter to the Minister of Justice of Latvia Gaidis Berzins with a demand to explain some peculiarities of the local procedure of declaring financial insolvency. High ranking European officials did so based on the plea of the German Palink shareholder – Rewe Group Company.

Specifically, the commissars ask whether or not it is possible to challenge the verdict of Riga Kurzeme District Court or to cancel it in a higher instance, as well as what instruments can the Prosecutor General and Supreme Court can use to protest this verdict. The letter also contains one sensitive issue: is it normal to declare an enterprise insolvent, if the reason for this is being argued over in a Court, and the auditors did not conclude the enterprise to have any problems with carrying out their obligations.

According to the authors of this letter, the Court violated a number of norms as well as basic rights of the enterprise by declaring it insolvent. After assessing the answers they expect to receive before the 14th of February, part of Latvia’s funding could be put in question.

BNN already reported: on the 5th of January 2012 Riga Kurzeme District Court declared Palink insolvent based on the plea of Sergey Gushin, who according to the cession assignment received the right to demand 30 thousand EUR from the debt of Palink to the Landeks construction firm.

Here dwells a Russian spirit, this smells of Russia

The only positive note is linked to people coming to our country. When compared to 2010, last year the number of requests to receive Latvian citizenship increased by 18.5% – up to 163.3 thousand. The growing popularity of Latvia among foreigners brings notable benefit to the State budget: the review of requests for citizenship cost these people 3.97 million LVL – by 600 thousand more than last year. Compared to 2010, the highest activity is expressed by Russians (+25%), Belarusians (+16%) and Ukrainians (+28%). As a result people from these three countries brought approximately a half of the aforementioned funds.

State secretary of the Ministry of Foreign Affairs Andris Teikmanis admitted: the contribution of serviced tourists in consular department is hard to evaluate, but overall foreign guests left no less than 150 million LVL here.

Also in comparison to 2010, last year the number of requests for residence permits doubled – up to 3 thousand. And again Russians and Ukrainians lead the way, which is confirmed by statistics of the Citizenship and Migration Department: citizens of these two countries make up more than 80% of investor visas.

According to the data from the Latvian Tour agencies and operators Association, the number of Russian tourists increased last year by 40% in comparison to 2010. And it is likely this is not the last argument in favor of developing first cooperative projects for popularizing Latvian rural tourism in Russia. They will be presented on the Balttour 2012 exposition, which is scheduled to open on the 9th of February.

Ref: 017.109.109.589


Leave a reply

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.

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.

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.

Newest comments