bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 24.06.2018 | Name days: Jānis
LatviaLatvia

Foreign investors’ mood improves further in Latvia

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe general mood of foreign investors in Latvia has improved in the past year, said Professor Arnis Sauka of Stockholm School of Economics in Riga at the presentation of the Foreign Investment Environment Index 2017 on Wednesday, 10 January.

He also said problems have not changed much, most of them are associated with the country’s demographic situation and labour force availability.

Interviewed investors gave Latvia’s investment attractiveness a score of 2.5 out of 5 in 2017, whereas the score given to Latvia the year before was only 2 out of 5. Efforts of Latvian policy-makers to improve the country’s investment environment were given a score of 2.9 points (2.3 points in the past) by interviewed investors.

Three fields in which no major progress was observed in the past 12 months include the demographic situation, labour force accessibility, as well as healthcare and social system. Investors gave the demographic situation a score of 1.6 points out of 5. 74% of interviewed investors said they have seen no improvements in this field in the past year.

«Yes, not major changes are expected with the country’s demographic situation, but we do wish to see at least some progress. If progress is achieved, this field will not have a declining tendency. In this case investors do not look at how many children were born – they focus more on political initiatives and measures undertaken to improve the demographic situation. We have yet to see any positive changes in this field. And if no positive changes are noticed, what can we expect from the future?» said Sauka.

Labour force accessibility is given a score of 2.7 out of 5. Unfortunately, 71% of respondents do not see any improvements in this field. «It is notable that it is more about productivity of workers, not their availability. Everyone says productivity of Latvian workers cannot be considered poor,» added Sauka.

Another sector in which no real progress was noted last year, according to investors, is healthcare and social system. Investors gave it a score of 2.5 points out of 5. 71% of interviewed investors mentioned not seeing any notable improvements in this field.

57% of interviewed investors also see no improvements for the country’s judicial system. 55% believe the quality of legislation associated with business activities has not changed at all, whereas 52% of investors said there is still a great deal of uncertainty in regards to certain decisions associated with the future.

«Investors still talk about lengthy and complicated court processes, which often paralyse everyday work. We can say that the situation has improved somewhat. Inefficiency is a word often mentioned by investors. I am not as much worried about obstacles in the existing system, but rather the fact that Justice Ministry acts blind and unwilling to resolve existing problems. I truly hope that this is no more than public rhetoric, because legal education in Latvia is very strong, and there is Judicial Affairs Council and other capable lawyers that are not shy to speak about problems. I hope that such a position from the ministry is only public and politically motivated,» said Sauka.

Investors are more positive about the quality of Latvia’s education system and science – 3.1 points out of 5. In addition, 17% of respondents fully agree and 40% partially agree that the education system has improved over the course of the past twelve months. 33% fully and 24% partially agree that support and communication with state structures has improved.

When asked about the quality of Latvia’s tax system, 17% of interviewed investors noticed improvements, 49% partially agree there have been improvements, whereas 43% of them said they have not seen any improvements. ‘Reading between the lines makes it look like investors do not believe things will remain the way they are,’ said the professor.

Among the initiatives undertaken by Latvia’s government, investors value the most the decision regarding non-application of reinvested profits with corporate income tax. Other noteworthy decisions include credit guarantees for exports and creation of a start-up environment. The lowest praise was given by investors to the initiative to introduce ‘zero bureaucracy’.

«If you try talking to policy-makers in ministries, they will give big speeches about all the good efforts, that 45 out of 50 initiatives have already been realized, three are in the process of completion and two more will be commenced soon. Businessmen laugh or cry, depending on which field they represent. One thing is putting initiatives on paper. It is completely different when initiatives are put into practice. Most often investors speak of bureaucracy in different e-systems and construction. Businessmen also mention unethical and illegal behaviour by state representatives as major problems,» said Sauka.

The foreign investors’ mood index was compiled in cooperation with Foreign Investors Council in Latvia. 42 businesses took part in it.

Ref: 224.109.109.4216


Leave a reply

Week in Lithuania. Parliament makes first step towards disclosing ex-KGB agents

The Seimas of Lithuania on Thursday, June 21, backed an initiative by the opposition Electoral Action of Poles in Lithuania – Christian Families Alliance to disclose now classified information on former agents of the Soviet KGB who voluntarily admitted their collaboration.

BNN summary of the week: CPCB visit to Saeima; ministers survive no-confidence votes; DTV case ends with mild penalties

BNN offers a summary of this week’s topical news in a variety of categories: Ruling; Future; Trust; Measures; Calendar.

SRS uncovers numerous violations more than half of inspected companies

State Revenue Service’s Tax Control Office performed a total of 305 thematic inspections of employers in Latvia in Q1 2018. Authorities recorded violations in 171 inspections, according to information from SRS.

Third level pension plan deposit volumes reach new record value

Residents’ interest for pension savings remains high. The volume of deposits made to private pension funds in the first three months of 2018 has reached a new historic peak: a total of EUR 16.5 million has been paid to 3rd level pension accounts, which is 11.6% more when compared to the same period of 2017, as reported by Finance and Capital Market Commission.

Petrol station network in Latvia caught performing fraudulent activities with diesel fuel

State Revenue Service’s Tax and Customs Police have uncovered and put an end to a fraudulent scheme with diesel fuel performed by some network of petrol stations in Latvia, as confirmed by the service.

Kaimiņš: I believe CPCB is performing a political order

In the evening of Thursday, 21 June, Corruption Prevention and Combating Bureau released three people previously detained as part of a criminal process regarding possible illegal funding of KPV LV party – Saeima deputy Artuss Kaimiņš, his colleague Atis Zakatistovs, and businessman Viesturs Tamužs.

Latvia’s parliament conceptually supports new sanction regulations

On Thursday, 21 June, Saeima supported in the final reading amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia that are meant to improve sanction regime regulations to ensure efficient application of national and international sanctions, as reported by Saeima press-service.

Storm in Tallinn floods streets, cuts Croatia-Argentina match short on TV

A rain storm has hit northern Estonia on Thursday, flooding some streets in the capital Tallinn, damaged buildings and badly affected the broadcast of an interesting World Cup game.

American banks tested for financial stress show positive results

The U.S. has performed banking stress tests and found that the 35 largest banks operating in the country have enough funds on hand to sail safely through a severe financial crisis.

Saeima fires judge for coming to work in a drunken state

On Thursday, 21 June, Latvia’s parliament supported the proposal to dismiss Rezekne Court judge Arvis Garais from his post. 71 deputies voted in favour, no one abstained and no one voted against.

UK to have three requirements to EU citizens willing to remain in UK

For citizens of the European Union willing to continue living in the UK after the country leaves the bloc, they will have to submit applications and answer three key questions over the internet, according to the country's interior minister.

Weather in Latvia to be rainy and cool during Ligo; next week’s weather to be dry and hot

Weather at the end of the week in Latvia will be dictated by a cyclone. Because of that, there will be instances of rain on Ligo. Weather is expected to improve next week, however, according to Latvia’s State Environment, Geology and Meteorology Centre.

Lithuania’s blood plasma corruption scandal extends to Latvia

The former head of Lithuania‘s National Blood Centre, suspected of corruption and involvement in unlicenced activity, received more bad news this week from Latvia, where investigators of the Lithuanian Special Investigation Service had questioned the Latvian Health minister, Anda Čakša.

Administrative burden to be reduced for foreign students and researchers

The administrative burden will be reduced for foreign students and researchers, as well as all education and research institutions hosting them. This is provided by the amendments to the Immigration Law approved by the Saeima in the third reading on Thursday, 21 June.

Latvian Economy Minister endures no-confidence vote

Saeima declined opposition deputies’ request for dismissal of Economy Minister Arvils Ašeradens.

Swedbank economist becomes new member of Bank of Latvia Council

On Thursday, 21 June, Latvia’s Saeima approved Mārtiņš Kazāks in his new post as member of Bank of Latvia Council, as confirmed by Saeima’s press-service.

Pope Francis’ visit to Latvia will be a national holiday

Latvia’s parliament has approved in the final reading a law that makes 24 September – the day Pope Francis plans to visit Latvia – a national holiday.

ICT specialist numbers in Latvia are below Europe’s average level

In Latvia, information and communication technology specialists form only 2.2% of all employed people in the country, which is considerably below the average level in the European Union – 3.7%. Romania and Greece are the only two EU member states in which the number of ICT specialists is below Latvia’s, according to European Commission’s DESI index.

Hungary adopts prison sentence for helping migrants

Hungarian National Assembly has passed a set of laws criminalising with prison terms some help provided to illegal immigrants by non-governmental organisations.

Harmony plans turning to Constitutional Court to prevent transition to Latvian language in schools

«Why should this reform stay unrealized? It is because schools are not prepared for cardinal changes coming from dozens of other reforms that have already shocked the country’s entire general education system,» says chairman of National Minority School Parents Forum and member of Harmony’s work group in Konstantīns Čekušins.

Deputies detained in KPV LV criminal case not declared suspects yet

Saeima deputy Artuss Kaimiņš and businessman Viesturs Tamužs detained in the criminal process regarding possibly illegal funding of KPV LV party have not yet been declared suspects. Both are currently in police custody. It is likely Kaimiņš will be released later today, 21 June.

Production of mines and grenades planned in Estonia

As the Estonian parliament has adopted new rules on military arms and ammunition production in the country, local defence firm Eesti Arsenal has voiced its plan to build a factory in Estonia to make military explosives.

Total tax debts in Latvia reached EUR 1.224 billion in June

At the beginning of June, total tax debts in Latvia, including topical, halted debts and extended repayment terms were equal to EUR 1.233 billion, which is 0.6% less compared to May, as reported by State Revenue Service.

Switch off internet nationwide during exams – Algerian approach

In an attempt to prevent cheating during secondary school exams, the north African nation Algeria, has turned off internet in its whole territory.

Control Service proposes kicking out shell companies as intensely as offshore companies

Shell companies in Latvia should be combated with the same intensity once shown to offshore companies, says chief of Anti-Money Laundering Service Ilze Znotiņa.

Newest comments