Analytics, Direct Speech, Economics, EU – Baltic States, Financial Services, Forum, Latvia

John Fraher. Photo: LinkeDin

The forum, organized by the Latvian Embassy in Great Britain, Latvian Investment and Development Agency and Baltic International Bank, brought together Latvian and British government members, business and economic experts to discuss Latvia's economic prospects and opportunities for investing in Latvia.

British Minister of State for Trade and Investment, Lord Green of Hurstpierpoint stressed that Latvia and Great Britain were linked by close ties since the Middle Ages when Latvia mostly exported timber and wood products to Great Britain – just as it does now.

Likewise, both countries share common values in supporting single European market and free movement of people, said Lord Green. Great Britain also sees Latvia as a springboard to Eastern markets. There are about 800 British companies operating in Latvia at the moment, part of which have used the opportunity to expand into the markets east of Latvia, while the others have concentrated on the growing markets of Latvia and the Baltic countries.

Three years ago, Latvia returned to growth and is currently the fastest-growing European Union economy, said Latvian Ambassador to Great Britain Andris Teikmanis. The Bank of Latvia President Ilmars Rimsevics said in turn that the crisis had taught Latvia a good lesson. The ability to swiftly consolidate the budget was one of the main factors that helped Latvia overcome the crisis, said Rimsevics.

British representatives were particularly interested in the high proportion, more than 49%, of non-resident deposits in Latvia's banking sector. Latvian officials explained that there was no reason to worry, stressing that, contrary to expectations, a very small part of deposits withdrawn from Cypriot banks ended up in Latvia, and emphasizing that Latvia's banking sector was property regulated.

The presentation by Economy Minister Daniels Pavluts (Reform Party) underlined favorable investment environment in Latvia and the fact that starting a business in Latvia takes very little time. Pavluts also said he was pleased to see that demand for Latvian labor force had decreased in Great Britain, explaining that Latvian workers were hoped to return to their home country.

Company Cytec Director Egbert Boerrigter said at the event that, for instance, Cytec offices in Latvia were established during the crisis, when finding employees in the country was very easy. Now however, finding employees for the company is much harder. At the same time, Boerrigter said he had a very high opinion of Latvian labor force, adding that his company was also hiring Latvian emigrants in Great Britain, urging them to return to Latvia and work for Cytec.

As reported, the goal of the two-day forum that started yesterday is to discuss the accomplishments of Latvia's economy and the challenges and opportunities of Latvia's accession to the eurozone, as well as investment opportunities in Latvia and closer cooperation between Latvian and British businessmen.