bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 25.09.2018 | Name days: Rauls, Rodrigo
LatviaLatvia

Economic Diary. Latvia offers the Chinese a dream of having a big family

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

The week kicked off with a scandal: management staff of the largest Latvian state enterprises Latvenergo and Latvijas dzelzceļš decided to increase salaries for top-managers. What makes this situation even more “delicate” is the fact that the reform of their salaries was carried out while the Economy Minister was away on vacation.

Society will not support

Nonetheless, the Cabinet of Ministers indirectly provoked this scandal with its last year’s decision that was supposed to officially mark the country’s overcoming of the crisis. With that, the management staff of large state enterprises (with turnover of over 40 million LVL) were allowed to combine posts and, as a result, increase their wages. However, it is clear that even the members of the government did not expect that the rise in salaries would be so significant. As it become known to the Latvian television, the total salary of the head of Latvijas Dzelzsceļš Ugis Magonis grew from 2.6 thousand to 8.5 thousand LVL. Salaries of members of the Board – from 2.4 to 6.8 thousand LVL. Monthly salary of the head of Latvenergo Aris Zigurs reached 8.7 thousand LVL per month, that of members of the Board – 7.5 thousand.

PM Valdis Dombrovskis ordered ministers of transport and economy to determine how justified (if justified at all) were the actions of the management staff of state companies. According to him, even though the law allows the increase of salaries of top managers, society will never accept this kind of increase. Furthermore, the head of the government said that a similar situation may be present in enterprises under Agriculture and Healthcare ministries.

Economy Minister Daniels Pavluts has already responded to the signal: he requested the the state secretary of the ministry Juris Puce provide explanations to the reasons why Latvenergo changed its organizational structure (salaries went up because of the introduction of new jobs) and salaries of top managers. According to Pavluts’ press secretary, the salary reform was carried out while he was away on his leave.

Sometimes it goes down

The index of Latvia’s annual inflation, on the other hand, brought good news this week: according to results of 2012, it was 2.3% – nearly twice as low as the index of 2011 (4.4%). The main factors that affected consumer price dynamics remain the same. Among external factor – global prices on energy sources and food. Among domestic – state of demand on the market and administratively regulated prices. Inflation expectations also play a vital role. They prepare consumers and allow the side of supply to increase prices.

How will these factors act in the next 12 months. “The global market has seen a rapid reduction of prices on energy sources and food in the last several months. The price on crude and diesel fuel has been rather downward oriented the past nine months. This could mean the end for the increase of tariffs on gas and heat,” – says senior economist of Citadele Bank Zigurds Vaikulis.

Experts expect that inflation will remain stable in the coming year. They do expect, on the other hand, that consumer prices may go up in 2014.

Officials have a lot of work

New year has come, and legislators once again have work to do. The Saeima’s winter session began this week, which includes a total of 174 draft laws.

It is expected that discussions will heat up around the Law on Euro Adoption in Latvia. The document is marked urgent: its was approved in the first reading in the middle of December. It is planned to approve it in the final, second, reading on January 31. Opposition officials previously voted against the law and threatened to initiate a referendum on the dates of Euro adoption. According to PM Valdis Dombrovskis, Latvia will not receive an invitation to join Eurozone while the issue of a possible referendum is open.

As part of the winter session, the long suffering amendments to the Law on Construction, which have been under fire for the last eight years.

Also, officials will be working on the Law on Public Procurement. The planned changes will relieve entrepreneurs from the necessity to personally prove the non-existence of unfulfilled obligations before the state budget.

Furthermore, during the winter session will include reviews of different proposals on the changes to the Insolvency Law. The amendments currently at the parliament propose the reduction of the terms of the bankruptcy procedure of individuals from the current 1.5-4 years to 1-1.5 years.

The Chinese to come to Latvia to raise children

Finally, some details of the program on offering temporary residence permits in exchange for investments became known this week. So far this program has been fairly popular among Russians: they form 72.4% of the total interested parties. They are mostly owners of small and medium business, as well as top-managers of large companies. Most of them are not interested in Latvian residence permit. However, some of them relocate to Latvia.

The most impressive dynamics are shown by the Chinese. While there were only 11 applicants from China that wanted to receive residence permits in Latvia in 2011, in 2012, this number increased to 118. Their interest towards Latvia can be explained with demographic reasons. In China, they are only allowed to have one child. A second passport, however, gives them the chance to have more children.

Ref: 017.109.109.5640


Leave a reply

  1. JPR says:

    Latvia should be for Latvians!!

  2. Tom says:

    Like the pic

  3. Roso says:

    Let me tell you, in China only people who work for the councils or government are restricted to have only one child. People who work for private businesses can have more than one child, but they must pay the government money every month from their wages to pay for this. It is totally false about only one child per family. I know I am chinese.

Latvian government to expand Money Laundering Prevention Service’s capacity

On Tuesday, 25 September, Latvian government reached an agreement on the need to reorganize the supervision Cabinet of Ministers has over Money Laundering Prevention Service. At the same time, members of the government also agreed to expand the service’s capacity, Finance Minister Dana Reizniece-Ozola told journalists.

New natural gas tariffs approved in Latvia; those who use more gas will pay less

The Public Utilities Commission has approved AS Gaso’s submitted natural gas transmission system’s tariff project, which provides for the introduction of a fixed fee for connection to permitted load regardless of the consumed gas volume.

OCMA: majority of Latvian immigrants live in Britain, Ireland and Germany

The Office for Citizenship and Migration Affairs has calculated the exact number of Latvian citizens living abroad. The majority of Latvians reside in Britain, followed by Ireland, Germany , and USA, according to the data compiled in July 2018.

Sweden's head of government Löfven loses no-confidence vote

The head of Swedish government, Stefan Löfven has not received the support of parliamentary majority despite his left-wing block narrowly winning the parliamentary election earlier in the month.

CC: number of business merges on a rise in Latvia

In the first eight months of 2018, Competition Council made twelve decisions regarding business merges, which is 50% more than the number of similar decisions made in the same period of last year. Consolidation of market participants takes place the most often in retail trade of household goods, BNN was informed by the council.

EU supervisor to investigate Estonian and Danish banking authorities on Danske Bank

The banking supervisory authority of the European Union has been asked to investigate the work of Denmark and Estonia’s national banking watchdogs over possible shortcomings in failing to prevent money laundering through the Estonia branch of Danske Bank.

airBaltic receives its 12th Airbus A220-300 aircraft

Latvian airBaltic airline has received its twelfth Airbus A220-300 aircraft with registration number YL-CSN. The airline plans to have a total of fourteen Airbus A220-300 aircraft by the end of 2018.

In pictures: Pope Francis arrives in Tallinn

The head of the Roman Catholic church has been welcomed in Tallinn as he begins the last leg of the papal visit to the Baltic states devoted to their centenary.

Meteorologists say first autumn storm in Latvia to take place this week

On Tuesday, 25 September, atmospheric pressure in Latvia will increase and clouds will tend to reduce in the afternoon, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Germany's largest bank required to improve fight against money laundering

The financial watchdog of Germany has called on Deutsche Bank to improve its measures against legalisation of dirty money.

Nearly 20,000 Latvians were living in Ireland in spring 2016

19,933 Latvian citizens were living in Ireland in spring 2016, according to census data from Ireland’s Central Statistical Bureau on the number of foreigners living in the country.

Russian protest leader Navalny detained right after previous detention

Alexei Navalny, a supporter of current protests in Russia against pension reform, has been released from administrative arrest, but arrested again on the same day to be kept in administrative arrest for another 20 days on charges of holding an illegal protest.

CPB: Russian special services remain highly interested about Latvia

Russian special services remain highly interested about Latvia’s internal politics. This includes 13th Saeima elections and their possible results. However, there is currently no information to suggest the election process could be influenced from the outside, admits Constitution Protection Bureau.

PHOTO: Pope Francis visits Riga Cathedral and meets seniors at St Jacob’s Cathedral

Pope Francis visited both Riga Castle and Riga Cathedral, where a service was held under his supervision. There he met with different Latvian officials. After that, the pope met with senior citizens at St Jacob’s cathedral.

Pope Francis arrives in Latvia for an official visit

Pope Francis arrived in Latvia on Monday, 24 September. He was greeted at the airport by President Raimonds Vējonis, Archbishop Zbigņevs Stankevičs and other public figures.

Week in Lithuania. President proposes amendments to restrict bailiffs' remuneration

Lithuanian President Dalia Grybauskaitė is putting forward amendments aimed at restricting bailiffs' financial remuneration to up to 15 per cent of the amount recovered.

BNN summary of the week: pre-election heat, rule of law in Latvia, Baltics prepare for Pope’s visit

BNN offers a summary of this week’s topical news in a variety of categories: Elections; Change; Stagnation; Fight; Visit; Investigation.

Court reschedules viewing of criminal case due to Non-citizens Congress leader’s poor health

Riga City Vidzeme Suburb Court announced today that the viewing of the criminal case in which leader of Non-citizens Congress Aleksandrs Gapoņenko is accused of inciting national hate will be postponed to a later date.

Producer prices in industry up 1.0% in Latvia in August

Compared to July, level of producer prices in the Latvian industry rose by 1.0 % in August 2018. Level of prices of products sold on the domestic market grew by 1.9 %, but of exported products – went up by 0.1 %.

Bishop: priest suspected of sexual abuse to be operated on in hospital

Pāvels Zeiļa, who is a priest of Rezekne Aglona diocese and the suspect in the criminal case regarding sexual violence and human trafficking, will undergo a complicated surgery on Friday, 21 September, as reported by Bishop Jānis Bulis.

Study: residents withdraw money from ATMs less often but in larger amounts

Every now and then discussions about dropping cash money altogether become active in society, AS PrivatBank representatives say.

HND Grupa design company, involved in Zolitude tragery, declared insolvent

Building engineer Ivars Sergets company HND Grupa, which was involved in the case revolving around the Maxima supermarket that collapsed in Zolitude, killing 54, not five years ago, has been declared insolvent, as reported by Latvijas Avīze.

Deputy Chief of State Fire and Rescue Service suspected of misappropriation

Latvia’s Interior Affairs Ministry’s Internal Security Bureau has detained deputy chief of State Fire and Rescue Service Ints Sēlis and one other official – a senior inspector, as reported by Panorāma programme of LTV.

Washington sanctions China for buying Russian military equipment

U.S. government has introduces sanctions against the Chinese army over a purchase of fighter jets and missile systems from Russia, despite a U.S. sanctions law targeting Moscow for attempts to sway in the 2016 U.S. election.

Autumn expected to begin soon in Latvia

Friday, 21 September, is expected to be warm in Latvia. Sun and considerable amount of clouds are expected, but not precipitation. Wind will draw in from the south, reaching a speed of 15-17 m/sec in western and central regions, as reported by Latvia’s Environment, Geology and Meteorology Centre.