bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 20.05.2019 | Name days: Venta, Salvis, Selva
LatviaLatvia

Expert: people should get used to cash money being a thing of the past

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe gradual decline of cash transactions is only logical in an age of progressing digitization. On top of that, Latvia is neither the first nor the last country experiencing such processes, says Turība University Business Management Faculty Pro-Dean Ieva Bruksle.

The expert says the world is gradually becoming more digitized and the changes affect monetary transactions.

«I believe more and more such solutions will soon enter our lives, and we have to get used to this. Such changes affect not only Latvia – it is already completely normal for many parts of the world. Moreover, some countries have gone even further. Sweden’s central bank Riksbank plans to commence a pilot project this year to develop electronic currency – a fully functional e-krona. This new currency would be released in circulation if permission is received,» says Bruksle. ‘In recent years Sweden has been gradually reducing use of cash in transactions. Results show that this goal is gradually progressing – credit cards and debit cards are the most common payment methods used in Sweden. Mobile transactions have become almost as popular as cash.’

The pro-dean mentions that by reducing the volume of cash in circulation authorities expand control mechanism capacity, making processes more transparent.

«If we look at amounts on which restrictions have been imposed, I would like to stress that they are not by any means small. The law provides restrictions on cash transactions whose total size exceeds EUR 7,200 regardless if the transaction consists of one or several operations. The ministry has also proposed reducing this amount to EUR 3,000 to better fight grey economy. Additionally, amendments provide the a restriction for private persons not engaged in economic activities to perform real estate and vehicle alienation transactions work more than EUR 1,500,» said Bruksle, adding that as non-cash transactions continue developing in the world, the same could happen in Latvia.

The expert says that some people consider this step bank lobby, because when performing money transfers from one bank to another, clients have to pay commission fee. The pro-dean does not deny that commission fee is a topic for discussion.

«One solution, on having a single state bank to help resolve the commission fee problem, would not be appropriate for market economy, because it would result in loss of competition,» says Bruksle.

«The end of 2008 marked the beginning of a process aimed at improving control over financial transactions. We expect security measures to increase in the future. This legislative draft will have its results. However, it is too soon to say how much it could help fight grey economy. Our society is very creative and I allow that some people might start looking for ways to circumvent restrictions,» said Bruksle.

In February, the Cabinet of Ministers supported Finance Ministry’s prepared amendments to the Law on Taxes and Duties. This legislative draft provides for reducing the number of cash transactions. Amendments may come to force around May. Before that, however, it needs to be supported in the Saeima.


Leave a reply

Estonia investigates electricity blackout in Russian border city

In Estonia, an investigation has been opened into a power blackout that took place in the north-eastern border city of Narva and other places in the region.

Latvia’s Saeima to pick a new state president after EP elections

Saeima’s Praesidium and Faction Council decided on 20 May to keep the State President’s Election Day unchanged – it will happen 29 May.

Study: packaging convenience still trumps environment friendliness

For Latvian residents convenience of packages remains the most important factor. However, environment friendliness is gradually becoming more and more important for people, according to results of a study by Immer Group.

Harmony reportedly used RTDB to hire foreign political communication specialists

Latvian investigators have acquired documents that reveal how prior to 13th Saeima elections Riga Tourism Development Bureau (RTDB), which receives funding from Riga’s budget, had performed at least ten money transfers to several political communication experts from Germany, Sweden and Spain, as reported by public broadcaster TV3 programme Nekā personīga.

Ukraine’s Zelensky starts presidency with dissolution of parliament

Ukraine’s new President Volodymyr Zelensky has been sworn in Kyiv on Monday and in his inaugural speech has announced the dissolution of the Ukrainian parliament.

Austria heading to snap election after right-wing coalition collapses

Austrian political leaders are favouring calling a snap election after the government coalition in Vienna collapsed over alleged influence peddling by Vice-Chancellor.

Egypt bomb attack hits tourist bus

17 tourists in Egypt have been wounded in a bomb explosion near the landmark Giza pyramids.

Latvian Railways reportedly wastes money with self-promotion in sports; UGF might be involved

Last year and at the beginning of this year, Latvian Railways spent at least two million euros on self-promotion. A considerable portion of this money was provided to sports organizations, of which multiple have ties with the Union of Greens and Farmers, as reported by public broadcaster Latvian Television programme De Facto.

In spite of heavy rains, air temperature in Latvia will reach +29° C this week

The sky will be cloudy at the beginning of this week in Latvia. Nevertheless, it will clear from time to time. As the sky clears, daytime air temperature will reach +24° C… +29° C, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Week in Lithuania: PM clears no-confidence vote, top Court slaps LFGU, councillor fined for slander

Last week, Lithuania suffered upset in 2019 Eurovision Song Contest; PM Saulius Skvernelis survived a vote of no-confidence by the ruling LFGU; the Constitutional Court ruled that the Seimas breached law in dealing with public broadcaster LRT.

BNN summary of the week: shadow over Latvia's economy; Kalnmeiers receives bashing

The week passed in Latvia under certain unpleasant news. A study concluded that in spite of Union of Green and Farmers minister Dana Reizniece-Ozola’s praised tax reform the grey economy proportion in Latvia has increased.

Regional Ventas Balss newspaper’s editor punished for reporting false news

On 17 May, Riga City Vidzeme Suburb Court found Ventas Balss newspaper’s editor Gundega Mertena guilty of reporting false news in the article «Material 'Confession of Lembergs’ troll' is a 100% made-up story», which was published on pietiek.com portal on23 September 2018.

Court enforces 1 000 euros from Ušakovs for Riga City Council deputy

Riga City Vidzeme Suburb Court has declined suspended Mayor of Riga Nils Ušakovs plea against Riga City Council deputy Vilnis Ķirsis over supposedly offensive statements the latter made against the plaintiff.

Latvian minister proposes re-assessing prosecutor general’s professionalism

Latvia’s Justice Ministry has noticed signs that suggest Prosecutor General Ēriks Kalnmeiers is not fit to remain in his post, as there are suspicions regarding his reputation, Justice Minister Jānis Bordāns told journalists on 17 May.

Estonia’s Nordica ended 2018 with EUR 2 million in losses

Estonia’s national air carrier registered considerable losses in 2018, reaching EUR 2,3 million in unconsolidated losses.

U.S.-pardoned whistle-blower Manning sent back to prison

A United States grand jury has ordered back to confinement Chealsea Manning, the former American military intelligence analyst, who spent seven years in prison in a Wikileaks-related case before being released by the decision of former U.S.

Privatization Agency: Latvian Railways chairman is baselessly speculating about privatization

«A lot of speculations and incorrect statements containing the word ‘privatization’ are coming from Latvian Railways (LDz) board chairman Edvīns Bērziņš. He is trying to divert attention in his corporate conflict away from the company board’s relations with shareholders,» BNN was told by Privatization Agency (PA) board chairman Vladimirs Loginovs.

International police effort dismantles GozNym gang of cyber criminals

An international criminal network that used GozNym malware in an attempt to steal an estimated USD 100 million from more than 41 000 victims, mostly businesses and their financial institutions, has been dismantled in a joint police operation.

Prediction: Latvia’s new concert hall will recover investments in 15 years

In the first 15 years after construction of Latvia’s new National Acoustic Concert Hall it will earn Latvia’s national economy a total of EUR 107.6 million, fully compensating investments and creating additional profits of EUR 17.6 million.

Poland fights child abuse with prison sentences up to 30 years

Polish legislators have extended prison terms for convicted paedophiles to a maximum 30 years. The Catholic country’s child abuse scandals have been underscored by a new documentary on such crimes by Polish priests.

Money intended for child protection used instead to pay bonuses to officials in Latvia

Welfare Ministry’s allocated state budget funding of EUR 619 000 was used, among other things, to pay bonuses to officials for obvious everyday tasks even though initially it was implied that employees of the ministry and State Child Protection Inspectorate (SCPI) would perform some specific tasks to prevent child and family abuse.

Meteorologists promise air temperature will soon reach +26° C in Latvia

On Friday, 17 May, there will be plenty of sun and clouds. Western regions may experience some rainfall. Wind will draw in from the east, reaching 13 m/sec in Kurzeme, as reported by Latvia’s State Environment, Geology and Meteorology Centre.

Construction commences in Estonian-Latvian 3rd interconnection project

By raising the first supports of the new high-voltage Estonian-Latvian 3rd interconnection, Latvia’s Augstsprieguma tīkls (AST) has commenced the next step in the high-voltage power line project for a new 330 kV power line from Riga TEC-2 all the way to Kilingi-Nõmme substation in Estonia, as confirmed by AST.

Riga Tourism Development Bureau may have caused damages worth EUR 300 000

As a result of criminal activities Riga Tourism Development Bureau has caused damages worth no less than EUR 300 000, according to initial estimates.

Tribunal of European «Islamic State» fighters to be discussed in Sweden

Seeking an international tribunal of the fighters of the «Islamic State» terrorist group following its defeat in Syria, Sweden has invited other European countries to discuss ways to persecute fighters from Europe.