Banks, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Thursday, 02.07.2020, 13:23

PM, Bank of Latvia president point at necessity to promote lending, investments

BC, Riga, 08.01.2020.Print version
During the meeting on Wednesday, Latvian Prime Minister Krisjanis Karins (New Unity) and Bank of Latvia president Martins Kazaks pointed at the necessity to activate lending and promote investments, writes LETA.

Kazaks told the press after the meeting that the parties met for the first time today and discussed the situation in Latvia's economy as well as the world.

Karins underscored that Kazaks symbolizes completion of the overhaul in the financial sector. The meeting has been promising. Karins voiced hopes that also in the future the central bank will provide its recommendations, helping the government to make decisions, including those related with tax policy.

The prime minister said that Latvia's gross domestic product keeps growing, Latvia is becoming more efficient, but there is still unused economic potential - accumulated savings.

"These savings in bank deposits should be turned into investments, but banks should change their cautious policies to more active lending. We should think what should be done to encourage residents, companies, banks to invest in the country's economy," the prime minister said.

Kazaks said that the country's monetary policy is supporting Latvia's growth, but the range of instruments that can be used is much broader - starting from budget policies to the overall economic environment that would help business representative be braver in their investments.

"Also, fight against financial crimes will be essential in promoting economic development," Kazaks said.

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