bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.04.2018 | Name days: Jurģis, Juris, Georgs
LatviaLatvia

PM: the Saeima should approve the decision in regard to bailout deal for Greece

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUEven though the decision about Latvia’s position in terms of the new bailout plan for Greece can be made by the government, it should be approved by the Saeima as well, noted Prime Minister Laimdota Straujuma.

The Prime Minister said trust is the most important faction in this matter. Trust in Greece’s ability and willingness to pay back the loan and carry out reforms. The first test of this trust will be the vote of the Greek parliament on Wednesday.

Straujuma explains that, in accordance with regulations, «the launch of the negotiation process and permission to provide a loan is a decision for the government». Nevertheless, this decision should also be approved by the Saeima European Affairs Committee and Budget Committee. The two committees could make their decisions on this matter at the end of August.

After the government meeting, Straujuma said Latvia will follow whether or not the Greek government decides to approve the planned reforms. An extraordinary meeting will be called on Friday, 17 July. During this meeting, the Latvian government will provide Finance Minister Janis Reirs a mandate to participate in the decision making process of Eurozone finance ministers in regard to Greece’s new bailout plan.

Head of Saeima’s Legal Affairs Office Dina Meistere notes that this matter is in the government’s competence. Nevertheless, nothing prohibits the government from turning to the parliament and asking for approval.

Straujuma had previously said that the Greek government has to demonstrate that reforms are truly being implemented. «We appreciate Greece’s provided proposals, but promises are not enough. We need to see actual work and we want to see it right now,» – said Straujuma.

The decision in regard to the third bailout plan for Greece and the size of help could be made in August. But it is only as long as Greece does not come across any major problems in the field of reforms, said Finance Minister Janis Reirs.

Reforms alone are not enough to guarantee a loan. If Greece manages to adopt necessary amendments to its laws, institutions – International Monetary Fund, European Central Bank and the European Commission – will study Greece’s request for assistance within four to six days. Only then will they start developing the bailout plan.

With that, Eurozone member states will make the decision regarding the opening of the bailout plan no sooner than August, explained Latvia’s Finance Minister.

Eurozone leaders have reached an agreement in regard to the new bailout plan for Greece. This plan would be realized using European Stability Mechanism. Greece has been given an ultimatum for the realization of economic reforms. Some of those reforms are to be realized by Wednesday.

Latvian Finance Ministry reports – if the third bailout plan is launched, ESM will borrow funds on international financial markets. It will not use the money paid by ESM member states. Payments provided to ESM by member states will not be used for Greece’s bailout.

Since Latvia’s membership in Eurozone and ESM, the country pays around 44 million to ESM annually. By performing payments to ESM, Latvia becomes a co-owner of ESM; the country procures capital shares in ESM. The board of ESM consists of Eurozone Finance Ministers. Membership provides member states voting rights. Each minister has one vote.

The money Latvia pays to ESM will not be used for Greece’s loan. ESM uses the money paid by member states to procure securities. Funds paid by member states form EUR 70 billion, which will serve as a buffer. This money allows ESM to receive the highest rating on financial markets, explains the ministry.

The topic of writing off Greece’s debts is not discussed on any level. IMF considered the possibility of extending the payback term. If this happens with ESM’s possible loan to Greece, ESM will borrow and re-finance the debt. No losses would appear for member states in this scenario as well. The possibility of using Latvian budget funds for Greece’s debt is only possible in the most dramatic situation – if Greece does not pay back its debt and payback term is not extended, notes the ministry.

Ref: 102.109.109.6783


Leave a reply

Latvian residents spend an average of EUR 81 on cosmetics every year

Latvian residents spend an average of EUR 81 on cosmetics every year, which is one of the lowest indexes in Europe. Compared to other Baltic States, Latvian residents spend less money on cosmetics, according to data compiled by Latvian Cosmetic Manufacturers Association.

Armenian Prime Minister Sargsyan resigns unexpectedly

The Prime Minister of Armenia, Serzh Sargsyan, has unexpectedly stepped down from office after ten days of protests in the Armenian capital Yerevan.

Baltic Express: Europe has already invented the bicycle; we just have to adopt it

13 March marked a historic event for Ventspils railway hub – for the first time in the history of Latvia’s railway a private cargo carrier – Baltic Express – delivered wagons to Ventspils 1st station and private infrastructure’s railway terminal. Why is this event so important and what is the future for Latvia’s cargo railway system? – Baltic Express chairman Māris Bremze told ventspilnieks.lv.

Reduction of employees in state administration went the smoothest in finance sector

Measures to reduce the number of employees in state administration last year went the smoothest for the State Revenue Service and the entire finance sector, said Latvia’s State Chancellery’s Director Jānis Citskovskis.

Alleged Paris terrorist Abdeslam convicted of attempted murder

The lone Paris attacks' suspect Salah Abdeslam has been found guilty of attempted terrorist murder of police, when taking part in a shootout with police in the Belgian capital Brussels in March 2016.

Rail Baltica’s infrastructure management model to be studied by British company

On 8 November 2017, RB RAIL joint Baltic company announced the winner in the tender for the study of Rail Balica’s infrastructure management model. The winner was British design, engineering and project management consulting company: Atkins and SNC-Lavalin Group.

Harmony and UGF have their sponsors, whereas Sudraba’s party relies on donations

Since the beginning of the week, Latvia’s political parties have received more than half a million euros in donations and membership fees. According to the database of the Corruption Prevention and Combating Bureau, pockets fill up the fastest for political parties in power in the country and Riga.

Chemical weapons investigators have taken samples in Doma, Syria

In Syria, the scene, where according to the UK, U.S. and France, an attack with chemical weapons was conducted earlier in April, has after delays been visited by inspectors from the Organisation for the Prohibition of Chemical Weapons, who have managed to collect samples.

Estonia and Finland to share patient data over innovative «secure» data highway

The Estonian-developed international data exchange technology X-road, said to be hacker-proof is to be the basis for a new Estonia-Finland system of linked doctor prescription registers that would make prescriptions issued in one country available in pharmacies in the other.

Prime minister: Linužs’ dealings with offshore business warrants an investigation

Latvia’s Transport Minister Uldis Augulis refused to comment on information reported by De Facto programme one week ago – that Rail Baltica organized Andris Linužs had signed a deal with an offshore company based in Seychelles and used by influential businessmen from St. Petersburg. Prime Minister Māris Kučinskis, on the other hand, told the programme that «deals associated with state security had been recorded in the past and represent a matter that warrants an investigation».

Afghanistan hit by tragic terror attack

In Kabul, Afghanistan, a suicide bomber has killed not less than 57 people and injured 119 more as the attack with explosives targeted a queue of people outside a voter registration centre, Afghan officials have stated.

Armenia mass protests continue as opposition leader Pashinyan detained

In Armenia, mass protests against ex-President Serzh Sargsyan being elected as Prime Minister, have continued over the weekend marking over a week of protests in the capital Yerevan.

Weather in Latvia to be cold; air temperature to rise at week’s end

This week will be slightly colder for Latvia. Rain is expected in almost all regions every day. It will start getting warmer on Saturday and Sunday, when daytime air temperature is expected to rise again, as reported by State Environment, Geology and Meteorology Centre.

Week in Lithuania. Economists, trade unions cautious about tax, pension reform plans

Lithuanian economists and trade union officials say that the government's planned tax and pension system reform unveiled on Monday, April 23, will lead to a rise in wages, but will not help drastically curb emigration.

BNN summary of the week: prime minister without solutions; birth rates down; organic food rules

BNN offers a summary of this week’s topical news in a variety of categories: Change; Growth; Business; Assessment; Fight; Future.

Economy Ministry: producer prices will affect dynamics of raw material prices

Producer prices in industry will grow in 2018 similarly as they had in 2017. Producer price level is largely affected by fluctuations of raw material prices in the world, as noted by Latvia’s Economy Ministry.

PUC: Gaso’s separation from Latvijas Gāze was legal

After examining documents submitted by the transmission system’s operator, the Public Utilities Commission concluded that activities performed by AS Gaso as part of reorganization of Latvijas Gāze were sufficient to ensure compliance with requirements for independence, as reported by PUC representatives.

Industrial producer prices in Latvia up 3.5%

Compared to February, level of producer prices in the Latvian industry rose by 0.2 % in March 2018. Prices of products sold on the domestic market grew by 0.1 %, but prices of exported products went up by 0.4 %.

Municipality: after meeting in summer, British Steel refused to buy KVV Liepājas metalurgs

After the meeting that took place at the end of August 2017, British Steel, which had previously voiced an interest in KVV Liepājas metalurgs, refused to purchase the bankrupt company, says Liepaja City Council chairman’s advisor for public relations matters Andrejs Rjabcevs.

SRS determines Latvian officials with the largest salaries

Thanks to real estate transactions Prison Administration Chief Ilona Spure and Healthcare Minster Anda Čakša had the largest income among state officials in 2017. The holder of the largest wage among state officials remains the governor of the Bank of Latvia Ilmārs Rimšēvičs, according to information compiled by the State Revenue Service.

Total tax debts in Latvia – EUR 1.255 billion

At the beginning of April total tax debts in Latvia, including outstanding, halted and payment extensions, was EUR 1.255 billion, which is 3.2% lower than the previous month.

Eight-year-long Latvian-Russian state border demarcation process concludes

Latvian-Russian state border demarcation documents have come to force. 21 April 2018 marked the conclusion of the two countries’ joint border demarcation process that lasted eight years, as reported by Latvia’s Foreign Affairs Ministry’s press-centre.

Prosecutor general turns to Constitutional Court against MPC regulations

Latvia’s Prosecutor General Ēriks Kalnmeiers has submitted a case to the Constitutional Court about the non-compliance of the mandatory procurement component with the country’s Constitution.

Unity may become New Unity; Kariņš may become prime minister candidate

Unity may start in upcoming Saeima elections with a new name – New Unity. The party may pick MEP Krišjānis Kariņš as its prime minister candidate, as reported by Panorāma programme of LTV.

France to fine for naming veggie foods in meat terms

In France, vegetable-based products such as soya steaks or vegetarian sausages marketed as meat substitutes are to be banned in France for misleading consumers as it will be prohibited for food producers to use any meat terms to label products that do not contain meat.