bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.05.2017 | Name days: Leontīne, Ligija, Lonija, Leokādija
LatviaLatvia

Saeima agrees to increase airBaltic’s base capital

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Thursday, 3 December, the Latvian Saeima made the decision in accordance with which the parliament agreed to increase the base capital of Air Baltic Corporation. 45 deputies voted in favour of this decision, 13 voted against and 2 abstained from the vote.

According to the Saeima’s decision, Finance Ministry is allowed to increase appropriations for Transport Ministry worth up to EUR 80 million to help increase the base capital of Air Baltic Corporation following the signing of the shareholders agreement. This money is necessary to secure further development of the airline, as reported by Saeima press-service.

The Saeima emphasizes in its decision that this measure is necessary to ensure the deal does not have any negative impact on the state budget balance. It is also noted in the decision that airBaltic and its subsidiaries are prohibited from procuring, leasing or using equipment produced by industrial military complexes faced with European or international sanctions.

This project was submitted to the Saeima by the parliamentary Budget and Finance Committee based on a letter from Finance Minister Janis Reirs.

BNN had previously reported that loud scandal around the possible procurement of Sukhoi aircraft from Latvia’s national airBaltic airline is possibly a sly aimed manoeuvre to distract everyone from a bigger and nastier scheme. It is possible that this scheme is meant to create an opening for an inflow of state fresh funds into airBaltic and the subsequent acquisition of that money by potential investors, among which are Andris Skele and multiple figures close to the Russian Kremlin.

According to information provided to Pietiek.com by reliable sources, the management of airBaltic had never considered procuring aircraft from Sukhoi. All announcements leaks that point toward plans to procure Sukhoi aircraft had been carefully prepared and leaked intentionally to enthusiasts and ‘target media’.

This leak may have been carried out with a single purpose only – to distract everyone from the size of financial investments for airBaltic and the special German investor found for airBaltic by Prudentia. This has been done to prepare the stage for the ‘public backlash in regards to airBaltic’s plans to procure aircraft from Sukhoi’ and make it look like a ‘victory of state interests’. With everyone distracted from Sukhoi, no one would think twice about government plans to invest EUR 80 million in airBaltic and the attraction of the German investor under undisclosed conditions.

Information published by the portal suggests that this distraction plan has close ties to Andris Skele and/or his associates. Sources say Skele’s handwriting is found all over this deal, as it is based on a single principle – find whatever in the country is in dire need of an owner and acquire it using half-legal means and third parties. It is widely known that this particular oligarch has had indirect financial interests in relation to airBaltic for years.

Multiple sources point to Skele directly, saying that he has had a hand in the previous ‘saving’ of airBaltic four years ago. Sources mentioned Skele as one of the main financial consultants of all financial schemes and the main author of most ideas. The goal of the most recent scheme, according to sources, is to use the Sukhoi scandal as a smoke screen to cover the defrauding of the EUR 80 million loan provided by the Latvian government to airBaltic.

According to sources, those behind the ‘smoke screen’ had gambled that in the current geopolitical situation Latvian politicians, media and society would believe the allegedly planned procurement of Sukhoi aircraft and spend considerable efforts to prevent it. Following this ‘victory’, no one would oppose the main goal of those behind this scheme – investment of state funds into airBaltic. Pietiek was provided with multiple potential amounts that could potentially surface as requests of airBaltic’s potential and currently unknown creditors – from EUR 30 million to EUR 100 million.

Ref: 102.109.109.8252


Leave a reply

Experts: Rail Baltica – connection that benefits everyone

The essence of Rail Baltica project is not combating the trends currently present in the world, but rather using them as an advantage, says advisor to the Bank of Latvia Andris Strazds. He adds that more and more economic and social development is centered in large and urban city centres.

Latvian companies ahead of neighbours in organization of business trips

Latvian businesses are more progressive in the organization of business trips than Lithuania. They do, however, spend a lot of money on planning and organizing of those trips. In addition, they also use inefficient financing methods – 20% of employees are forced to pre-finance their business trips from their own pockets, according to results of an international study.

Riga Eastern Clinical Hospital to identify patients using fingerprint data

Riga Eastern Clinical Hospital has introduced biometric data identification system that will be used to identify patients using fingerprint data, BNN was informed by the hospital.

FDC: micro-enterprise tax has created serious defects

The micro-enterprise tax has created serious defects for Latvia’s tax system, said Fiscal Discipline Council chairman Janis Platais in an interview to Latvijas Avīze.

Microsoft software licences cost Estonia millions each year

Estonian ministries and their subordinated institutions pay a total of under five million euros each year in Microsoft software licence fees.

Latvia’s unemployment rate was 9.4% in Q1 2017

In Q1 2017 the Latvian unemployment rate constituted 9.4 %. Compared to the previous quarter, the unemployment rate increased by 0.1 percentage points, whereas, compared to the same period of the year before, the rate reduced by 0.9 percentage points.

Pension expert: how far can index funds root themselves in Latvian pension plans?

Latvian pension plan clients can still pick existing pension plans with sufficiently flexible deposit policy and possibilities to receive consultations. It should be added, however, that pension plans based on index funds can find clients in Latvia for whom low-price guarantees is important the most, Nordea Pensions Latvia board member Ilya Arefjevs predicts.

Latvian Defence Ministry plans the largest tendering process in country’s history

This summer, Latvian Defence Ministry plans to announce the largest tendering procedure in the history of Latvia’s army. It is planned to procure heavy vehicles to transport armoured vehicles and troops. The total amount for the next ten years may reach EUR 200 million, as reported by Nekā personīga.

Study: engaging in business improves satisfaction with life

It has been concluded that psychological aspects are far more important than financial aspects in business operations – stability, family support, exchange of experience and realization of ideas are important for emerging businessmen, as concluded in a study performed by Altum.

Following use of EU funds, demand for loans increases in municipalities

Demand for loans from the State Treasury has increased after use of EU funds became more active, said Kaspars Abolins, chief of State Treasury, in an interview.

Swiss voters decide to move away from nuclear energy

Switzerland has decided to quit nuclear power stations and opt for renewable energy, show the results of a referendum held on Sunday, May 21, where 58% voters backed phasing out nuclear power.

Child vaccination made mandatory in Italy

Reacting to lower child protection against measles, the government of Italy has decided to make vaccination against 12 illnesses mandatory for children before they start going to state schools.

Deputies to decide on prohibiting gambling in Riga’s historic centre

On Monday, 22 May, deputies will discuss the matter on sorting out Riga’s historic centre. It is stated in new territorial plans that it will be prohibited for gambling halls to be located in this area.

Week in Lithuania. Lithuania to start paying child money in 2018

Lithuanian Prime Minister Saulius Skvernelis says that the government will follow up on its plan to next year start paying a monthly benefit for each child regardless of their parents' income, but adds that the state cannot afford to pay more than 30 to 50 euros in so-called «child money».

BNN summary of the week: problems with state financial accounts Baltics to promote healthy eating

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

Specialists: noxious smoke from the fire claims more lives than the flames

The biggest damages during a fire are caused by flames, whereas noxious smoke from the fire kills more people, as noted by firefighting specialists.

FVS uncovered illegal sheep meat product trade

Inspecting an advertisement published on Facebook, Latvian Food and Veterinary Service uncovered illegal trade of sheep meat, canned meat storage and meat product distribution organized in an office building on Selpils Street, Riga, as reported by SRS.

Municipal elections 2017: what do people say?

With municipal elections gradually coming close, BNN offers a compilation of opinions provided by experts from different industries. Short answers consist of thoughts about specific municipalities that affect respondents directly, and municipal administrations in general – what people expect from officials and what changes they expect from elections.

Sweden decides to drop Wikileaks Assange arrest warrant

Prosecutors in Sweden have made the decision to quit the investigation in the case, where the founder of classified document leaking organisation Wikileaks, Julian Assange, is charged with rape and to drop the European arrest warrant on him.

Vejonis: we have yet to assess the use of funding in healthcare

In his interview to 900 seconds, Latvian President Raimonds Vejonis said the level of competent use of funding in the country’s healthcare sector has yet to be properly assessed.

ST: changes to Latvia’s credit rating associated with GDP growth

The possibility of Latvia’s credit rating growing is directly tied to gross domestic product growth, admits State Treasury manager Kaspars Abolins.

War games start in Estonian large-scale military drill with allied units

The military drill of the annual Estonian Defence Forces entitled Spring Storm has entered its key stage of a week of imitated battles, where units of other NATO member states and partner states are to take part.

EP tells member states to speed up refugee resettlement; especially children

European Union member states have to fulfil their promises to resettle asylum seekers from Greece and Italy. This especially applies to children, as stated in European Parliament’s resolution approved 19 May.

Total costs of reconstruction of Mezaparks Grand Stage may reach EUR 77 million

The estimated costs for the reconstruction of Mezaparks Grand Stage may reach EUR 77 million, as announced by Riga City Council’s Property Department Direction Olegs Baburovs at the first meeting of the Song and Dance Celebration Council.

Greece passes further austerity measures to receive next bailout payment

The parliament of Greece has adopted a further set of austerity measures, which are necessary to ensure the next bailout instalment worth several billion euros.

Newest comments