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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 23:37

Melngailis: Lattelecom and LMT must be sold, just like Citadele

BC, Riga, 11.05.2015.Print version
The state sold Citadele as planned, and the same should be done with the state's stake in Lattelecom and Latvijas Mobilais Telefons (LMT); this according to former Lattelecom CEO Nils Melngailis, who was instrumental in breaking up Parex banka, cites LETA.

He admitted that he currently does not live in Latvia, which is why he is not fully informed about all processes in Latvia, making him unable to discuss the Citadele sale deal objectively. However, he stressed: "I only know that Citadele bank had to be sold, as stipulated by European regulations."

 

According to Melngailis, Citadele’s sale process was probably not explained clearly, and became a "political soccer game" during the Saeima election campaign. At the same time, Melngailis reminds that the European Union's (EU) support played an important role regarding now-defunct Parex banka, as "no one in Latvia at the time would have invested a cent in it."

 

"We would have lost the bank and failed to sell Citadele without the EU's support. We must also take into account that economy in Europe is still recovering, and banks are not considered to be viable investment targets. Europe still has few bank sales deals. The list of Citadele’s potential buyers was not long, which is why we ought to be glad that we managed to find investors, who are determined to improve it," said Melngailis.

 

Asked about the best framework for Lattelecom and LMT – to merge the two companies or sell the state's stake in them – Melngailis said that the state should not get involved in business, as private companies on the free market are operating more efficiently than those with state capital.






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