Banks, Financial Services, Investments, Latvia, Legislation, USA

Economy Minister Vjaceslavs Dombrovskis (Reform Party/Unity) told members of the press that after the PA's board stepped down today, the Economy Ministry had attempted to appoint new board members. However, since the new PA board members must be certain criteria and must have a good understanding of the Citadele sales process, then the potential circle of candidate is quite small.

According to Dombrovskis, only one persons involved in the Citadele sales process has expressed the desire to become a PV board member – the head of the PA's Commercial Services Department Vladimirs Loginovs.

As reported, the Latvian Privatization Agency board resigned today due to the Citadele Bank deal.

In order for the PA to sign the agreement tomorrow on the sale of Citadele, the signatures of two PA board members are necessary. Since there are no board members at the moment, the PA is not capable of authorizing any decisions until a new board is appointed.

''The resignation of the PA's board does not mean the agreement will not be signed. We just need a bit more time to find a second board member,'' Dombrovskis added.

CEO of Latvian Privatization Agency, Ansis Spridzans, told LETA that he and board member Guntis Lausks submitted their resignation letters yesterday because they do not support the government's decision to sign the agreement on selling Citadele without delay. Specifically, Spridzans pointed out, this taking into account that there was a chance to discuss the agreement's terms until the end of the year. Spridzans believes that the terms need to be improved, as they are "not good enough", nevertheless, the government plans to sign the agreement as soon as possible.

Spridzans and Lausks refuse to sign under the current terms. Spridzans did not provide detailed comment on what exactly should be improved, adding that the Citadele sale agreement is a confidential document, and its contents cannot be revealed publicly.

Prime Minister Laimdota Straujuma (Unity) believes that if the Citadele sales process is not concluded, the now former Privatization Agency board member Andis Spridzans will be held responsible.

''Spridzans will be held responsible, as he is the persons who has been dealing with the sales process the past two years and the one responsible for ensuring the best possible conditions for the sales deal,'' the prime minister explained. ''This leads me to question – what has he been doing the past two years?'' Straujuma asked.

The prime minister expressed bewilderment at Spridzans' decision to suddenly step down. She believes that he is fearful of taking responsibility of his work. ''Such a step does not say anything good about his professionalism, as he was the one who submitted such a sales agreement to the government,'' she added.

LETA also reported, following Societe Generale's recommendation, the government decided on Tuesday to sign the Citadele sale agreement with U.S fund Ripplewood Advisors LLC.