25/04/16
46.3 Million Euro from the Swiss Cooperation Program was Invested in the Latvian Economics
46.3 million euro from the Swiss Cooperation Program was invested in the Latvian economics, according to the Ministry of Finance.
46.3 Million Euro from the Swiss Cooperation Program was Invested in the Latvian Economics
46.3 million euro from the Swiss Cooperation Program was invested in the Latvian economics, according to the Ministry of Finance.
On Thursday, the 8th annual meeting in the framework of cooperation of Latvia and Switzerland was held in the Ministry of Finance. The participants acknowledged that Latvia has successfully managed to achieve and even exceed the planned results. 46.3 million euro or 89% of available funding under the program was invested in the national economy of Latvia. Swiss experts highly evaluated post-project supervision in Latvia, noting that it could serve as an example for other recipient countries of Swiss co-financing.
Financing from the Program of cooperation with Switzerland in the amount of nearly 49 million euro is available from 2007 in Latvia. 12 projects in such areas as regional development, the modernization of vessels, improvement of the environment, support of the private sector and the NGO sector, education and research, financial sector regulation and access to finance were implemented with the support of the program in Latvia.
Latvia is consistently ranked among the leaders among 12 beneficiary countries of the Swiss co-financing, said the Ministry of Finance.
The decision related to the next stage of Cooperation program of Latvia and Switzerland can be made in the second half of 2017 as a result of the positive outcome of the negotiations between the Swiss Government and the European Commission.
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14/04/16
German Investors Expect to Increase the Turnover in Latvia This Year
This year, German investors expect to increase the turnover in Latvia and every second company working in the country with German capital expects growth in export, according to a survey of the German-Baltic Chamber of Commerce in Lithuania, Latvia and Estonia
German Investors Expect to Increase the Turnover in Latvia This Year
This year, German investors expect to increase the turnover in Latvia and every second company working in the country with German capital expects growth in export, according to a survey of the German-Baltic Chamber of Commerce in Lithuania, Latvia and Estonia (AHK).
According to the Executive Director and Member of the Board of AHK Florian Schroeder, 1097 enterprises with German capital are currently registered in Latvia, but the most important investment fields are mechanical engineering, woodworking and metalworking. The German capital is included in such enterprises as AKG Thermotechnik Lettland, Valmieras stikla šķiedra, Zieglera mašīnbūve, Rettenmeier Baltic Timber, Kurzemes Atslēga-1.
According to the words of Schroeder, the general mood of German investors has become more positive. A year earlier, the biggest fear was associated with geopolitical events in the world, especially in Russia, but now the mood has improved and investors are hoping for positive development of the business.
“Of course, the Russian embargo and the fall of the rouble affected all types of businesses, but the Germans are pragmatic and never focus on business only in one country, but other markets are found instead of Russia”, said Schroeder.
65% of the enterprises surveyed predict a positive development of business this year, but two-thirds expect to increase turnover, and it is for 22 percentage points more than last year.
The number of enterprises that rely on the positive development of exports has doubled compared to last year, and the result is better than in Latvia and Lithuania.
Also, respondents expressed growing appreciation of business environment in Latvia compared with other countries in Central and Eastern Europe. Latvia takes the second place among the 20 most attractive countries for investors, and only Estonia was rated even higher.
At the same time, there are aspects that have not improved in comparison with 2015, in particular, the transparency of the building tenders and qualification of workers. A third of respondents are dissatisfied with vocational education system in Latvia.
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05/04/16
A Number of Events for the Development of Economic Cooperation between Latvia and Belarus will be Held This Year
This year, a number of events for the development of economic cooperation between Latvia and Belarus will be held, as reported in the Ministry of Economics.
A Number of Events for the Development of Economic Cooperation between Latvia and Belarus will be Held This Year
This year, a number of events for the development of economic cooperation between Latvia and Belarus will be held, as reported in the Ministry of Economics.
The Minister of Economics Arvils Ašeradens discussed topical issues of bilateral economic cooperation and the events scheduled for this year with the Ambassador of Belarus in Latvia Marina Dolgopolova on Friday.
Ašeradens expressed his satisfaction related to active economic dialogue and cooperation between Latvia and Belarus, as well as in connection with the abolition of EU trade restrictions in regard to Belarus, which would be a significant turning point in the expansion of bilateral economic cooperation.
Latvia cooperates with Belarus in the field of trade, transit and logistics, tourism, light industry, etc. Prerequisites for successful cooperation include geographic proximity and extensive contacts of businessmen, as well as different formats of cooperation - the Belarus-Latvia Intergovernmental Commission, the Latvia-Belarus Business Cooperation Council, the Latvian foreign trade representation in Belarus.
The Minister welcomed the plans of Belarus to strengthen bilateral economic cooperation, proposing to extend it also to the field of information and communication technologies, education and science, energy efficiency.
During the meeting, they discussed the possibility to hold the Latvian-Belarusian business forum in Riga in the autumn and the Ambassador offered include the areas such as transport and logistics, IT, trading in the commodity exchange, finance and loans.
In the autumn, the Days of Latvia in Belarus will be organized. This year, it is planned to organize a number of trade missions to Belarus for Latvian companies working in the fields of transport, tourism, engineering and health. It is scheduled to hold the 12thmeeting of the Belarus-Latvia Intergovernmental Commission on economic, scientific and technical cooperation issues in Belarus.
Belarus takes the fourth place among the foreign trade partners of Latvia outside the EU - after Russia, China and Switzerland. In 2015, trade volume between the two countries amounted to 522.4 million euro – for 7.6% less than in 2014. Latvia has a negative balance of trade in goods and services with Belarus.
According to the data of LLC “Lursoft”, there are 2263 enterprises with Belarusian capital working in Latvia. According to the Bank of Latvia, the Belarusian direct investment in Latvia amounted to 25.3 million euro, while the Latvian in Belarus - 50.9 million euro at the end of 2015.
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29/03/16
„Statoil”: the SRS Becomes More Friendly to Entrepreneurs
The company “Statoil Fuel&Retail Latvia” positively evaluates the work of the State Revenue Service (SRS), because there are several fields, in which the SRS became much friendly to entrepreneurs, said the Executive Director of “Statoil Fuel&Retail Latvia” Gunta Jekabsone.
„Statoil”: the SRS Becomes More Friendly to Entrepreneurs
The company “Statoil Fuel&Retail Latvia” positively evaluates the work of the State Revenue Service (SRS), because there are several fields, in which the SRS became much friendly to entrepreneurs, said the Executive Director of “Statoil Fuel&Retail Latvia” Gunta Jekabsone.
The improvements relate to, for example, submission of electronic documents, communications, risk analysis, the assessment of which companies should be subject to in-depth audit.
“I think that the SRS copes with its tasks. In recent years, the trend is positive", said Jekabsone.
“Good initiative is the White List. The benefits are small, but the administrative burden for those who are in this list is great. It is rather a question of prestige. But it is also a step forward in cooperation with honest businessmen. I hope the following steps will be taken”, said a businesswoman.
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22/03/16
The Companies from Lithuania and Estonia Lead in the List of the Largest Companies of the Baltic States
The retail companies dominate in Latvia in the list of 500 largest companies, industrial companies in Lithuania have no equal competitors, but Estonians are strong with shipping companies growing at the expense of the Latvian side, according to a study conducted by the Lithuanian business newspaper Verslo zinios together with the Latvian Dienas bizness and Estonian one Aripaev.
The Companies from Lithuania and Estonia Lead in the List of the Largest Companies of the Baltic States
The retail companies dominate in Latvia in the list of 500 largest companies, industrial companies in Lithuania have no equal competitors, but Estonians are strong with shipping companies growing at the expense of the Latvian side, according to a study conducted by the Lithuanian business newspaper Verslo zinios together with the Latvian Dienas bizness and Estonian one Aripaev.
In the hands of the five largest companies, such as Orlen Lietuva, Maxima LT, Ericsson Eesti, Uralchem Trading and Tallink Grupp is concentrated 10% of the total turnover of the 500 largest companies, but the 50 largest enterprises of the region concentrate at about 30% of the revenues of all companies from the list, according to the results of 2014.
Exactly half of the sales give trade sector companies in Latvia. In Lithuania, contribution of that sector is 40%, in Estonia - 44%. Particularly brightly are distinguished industrial enterprises in Lithuania, whose total income amounted to a substantial share of total revenues in 2014 - 35%. In Latvia, the share of sales in this sector was 12%, in Estonia - 19%.
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15/03/16
The Court Found the Latvian Bank “Trasta komercbanka” to be Liquidated
The Riga Vidzeme District Court decided to admit the JSC “Trasta komercbanka” to be liquidated on Monday.
The Court Found the Latvian Bank “Trasta komercbanka” to be Liquidated
The Riga Vidzeme District Court decided to admit the JSC “Trasta komercbanka” to be liquidated on Monday.
A sworn attorney Ilmars Krums is appointed by the bank to be the liquidator of the bank. The verdict of the court is final and not subject to appeal.
While the appeal of revocation of a license is not considered by the bank, the court, liquidating the bank, artificially deprives it of the opportunity to implement its rights, said the representative of “Trasta komercbanka” Christa Kreizberga-Neya in the court. She reiterated that the liquidation of the bank “cuts off” many things, provided for by legal acts of the EU.
The representative of the Financial and Capital Market Commission (FCMC) Ieva Berroni explained that we are talking about the terms in this process - even if the proceedings on the liquidation of the bank would be postponed, the bank has been revoked the license already, so the process cannot be stopped.
The second representative of the FCMC added in the court that the case of liquidation of the bank should be continued and there is no reason to delay it as long as the rights of the bank are not restricted.
As indicated by Berroni, the bank liquidation process is primary aimed at the return of its assets and leaving of “Trasta komercbanka” out of the market will not have a material negative effect on the stability of the Latvian financial sector.
The bank representative said that a national court cannot make a decision, as the Latvian laws are not harmonized with EU standards.
The representative of the FCMC previously explained to the court that the revocation of the bank license is thoughtful and carefully considered decision. Liquidation of the bank was asked to start as soon as possible by the FCMC, so that you can begin to meet the needs of investors.
In her turn, the representative of the bank said that the decision of the European Central Bank provides the possibility to dispute it, and this right is guaranteed by legislative acts of the European Union.
As it was previously reported, the Riga Vidzeme District Court began to examine the case of the beginning of the liquidation process of “Trasta komercbanka” at the request of the FCMC.
As reported, the European Central Bank annulled the license of “Trasta komercbanka” at the request of the FCMC on March 3.
“Trasta komercbankà” has been working since 1989. The Group has its representations in Russia, Ukraine, Kazakhstan, Tajikistan, Azerbaijan and a branch in Cyprus. Igor Buimisters owns from 33% to 50% of the bank's shares, Ivan Fursin (indirectly) - from 20% to 33%.
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11/03/16
Statoil: Estonians More Often Buy Fuel in Latvia
According to Statoil, the Estonians more often buy fuel in Latvia due to the difference in the prices.
Statoil: Estonians More Often Buy Fuel in Latvia
According to Statoil, the Estonians more often buy fuel in Latvia due to the difference in the prices.
Prices for gasoline and diesel fuel in Latvia are lower than in Estonia and Lithuania, said director of production of Statoil Fuel & Retail Latvia Armands Zubulis. The price of diesel fuel in Latvia is for more than 10 cents cheaper compared with Estonia, he added.
According to the data of Statoil, more and more Estonians visit petrol stations in Latvia, especially those ones located in the area of Latvian-Estonian border.
According to the European Commission data the price of gasoline in Latvia was the fourth one last year, but the price of diesel fuel - the second lowest in the EU.
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04/03/16
Housing Affordability has Increased in the Capitals of the Three Baltic States
Housing affordability of dwelling has increased in the capitals of the three Baltic States in the IV quarter of 2015 according to the last Housing Affordability Index prepared by Swedbank.
Housing Affordability has Increased in the Capitals of the Three Baltic States
Housing affordability of dwelling has increased in the capitals of the three Baltic States in the IV quarter of 2015 according to the last Housing Affordability Index prepared by Swedbank.
Housing Affordability Index has increased by 4.7 points - up to 160.1 points in Riga, in Tallinn - by 4.2 points, up to 153.4 points, in Vilnius – by 4 points, to 129.2 points in the IV quarter of 2015 in comparison with the IV quarter of 2014.
“It means that household income exceeded the required ones for 60.1% in Riga in the IV quarter of 2015 in order to afford an apartment in accordance with the established norms and thus mortgage payments would not exceed 30% of net income”, - explains Swedbank.
Interest rates on mortgage loans in Estonia and Lithuania were down slightly, but in Latvia – increased in the IV quarter of 2015.
The time required for the accumulation of funds to make a first instalment in the amount of 15 per cent on a mortgage was a month and a week less than a year earlier constituting of 24.6 months in Riga in the IV quarter of 2015. In Tallinn, it decreased by about three weeks - to 28.5 months, in Vilnius – by a month, to 36.8 months.
In the terms of the sum assets, Swedbank is the largest in Latvia.
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29/02/16
Latvia is Planning to Sign an Agreement on Accession to the OECD in Early June
Progress achieved up to date gives hope that Latvia will soon finalize the technical negotiations with the Organisation for Economic Co-operation and Development (OECD).
Latvia is Planning to Sign an Agreement on Accession to the OECD in Early June
Progress achieved up to date gives hope that Latvia will soon finalize the technical negotiations with the Organisation for Economic Co-operation and Development (OECD). It will sign an agreement on accession to the organisation within the framework of the OECD Ministerial Council meeting on June 1 or 2 in Paris. It is stated in the report of the Ministry of Foreign Affairs.
In the second half of last year, Latvia has performed significant work in the process of joining to the OECD, but there were problem issues.
Latvia should be evaluated in the 21 committees of the OECD, which will give their opinion at the end of the negotiations. The final phase of negotiations is held now.
Latvia has received positive references in the majority of the OECD committees until the end of 2015. Formal decisions were made by 14 committees, but four more is to made at the beginning of the year in regard to education policy, health care, fiscal matters, investment.
A discussion on the invitation of Latvia in the organisation will be held after the completion of technical negotiations at the OECD Council.
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23/02/16
Overproduction of Wheat is Expected in the World this Year
The global market has faced overproduction of wheat against the backdrop of growth in production over the last 5 years, as well as high carry-over stocks of grain products in the current season.
Overproduction of Wheat is Expected in the World this Year
The global market has faced overproduction of wheat against the backdrop of growth in production over the last 5 years, as well as high carry-over stocks of grain products in the current season.
This was announced by a senior editor of the grain department of information agency Platts Andre Agapi, speaking at an international conference Middle East Grain Congress in the United Arab Emirates.
“Growth in production of wheat in many key countries exporting wheat is observed in 2015/2016. In particular, the gross harvest of grain was increased by Ukraine - to 27.5 million tons against 24.5 million tons in a previous season, Russia - up to 61 (59.1) million tonnes, the United States - to 55.8 (55.1) million tonnes, Australia - to 24.2 (23.1) million tonnes and the EU countries - to 149.5 (149.1) million tonnes”, said an expert.
Also, the analyst estimated the export potential of wheat in some key countries until the end of 2015/2016. Thus, according to A. Agapi Ukraine can supply to foreign markets about 7.4 million tons of grain production within 4.5 months remaining before the end of the season. For Russia, this figure is 5.8 million tons, for the EU countries - 12.5 million tonnes, for the United States - 8.1 million tons.
Separately A. Agapi focused his attention on India. “In the current season in India, there is a decrease of gross harvest of wheat by 7 million tons – up to 89 million tons. Thus, the country can switch from the exporters to its importers and depending on the decision on the further functioning of the 25% duty on wheat import, may import from 1 to 4 million tons of grain”, said the analyst.
At the same time, A. Agapi said that Australia will become a potential key supplier of wheat to India.
In Latvia, the grain is still one of the most important groups of export goods. In 2015, Latvia sold 1.79 million tonnes of wheat and wheat-rye mixture at foreign markets, which is 416 thousand tons or 30.2% more than the year before.
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19/02/16
The Latvians are Buying More Expensive Products with the Increase of Purchasing Power
The Latvians buy more expensive foodstuff, which has a positive effect on the increase of the turnover of food trade with the increase of purchasing power of the population, as said the Agricultural Market Promotion Center's (AMPC) chief, Inguna Gulbe in an interview to the business information portal Baltic Business Service of BNS Agency.
The Latvians are Buying More Expensive Products with the Increase of Purchasing Power
The Latvians buy more expensive foodstuff, which has a positive effect on the increase of the turnover of food trade with the increase of purchasing power of the population, as said the Agricultural Market Promotion Center's (AMPC) chief, Inguna Gulbe in an interview to the business information portal Baltic Business Service of BNS Agency.
“People do not buy more foodstuff, they buy more expensive food products with the increase of purchasing power”, she said adding that this aspect is to increase the volume of food trade in financial terms in 2016. At the same time, the population is reducing in Latvia, as the birth rate exceeds the death rate, because a part of residents is leaving the country, which has a negative effect on the turnover of food trade.
According to her forecasts, foodstuff export is not likely to increase due to low prices in financial terms this year. For example, grain export in tonnes is increasing, but does not increase in financial terms.
The Agricultural Market Promotion Center was established in 1995 as a structural unit of the Latvian State Institute of Agrarian Economics. Its task was to collect, summarize and provide information to the European Commission on the prices and volumes of production of certain agricultural products starting from May 1, 2004. This information is used in the formation of EU agricultural policy.
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15/02/16
Riga City Council and Swedbank will Support Novice Entrepreneurs in the Framework of the Grant Programme Take-Off
Riga City Council and Swedbank will sign an agreement on the implementation of the grant programme Atspēriens (Take-Off) for the fifteenth time in a row in the first half of 2016 in order to promote the development of small and medium entrepreneurships in the capital.
Riga City Council and Swedbank will Support Novice Entrepreneurs in the Framework of the Grant Programme Take-Off
Riga City Council and Swedbank will sign an agreement on the implementation of the grant programme Atspēriens (Take-Off) for the fifteenth time in a row in the first half of 2016 in order to promote the development of small and medium entrepreneurships in the capital.
Entrepreneurs can get up to 15 000 euro this year to support of one innovative business idea. Applications for grants will be accepted until March 21.
Signing of the agreement on the implementation of the programme in 2016 will take place on Thursday, February 18 at 1.00 pm attended by the Chairman of Riga City Council Nil Ushakov, head of Swedbank Maris Mancinskis and Member of the Board of the company Certes Technologies Agnis Kalnins. The signing of the agreement will take place in premises of the company Certes Technologies at the address Mukusalas Street 41b-8.
This company became the winner of the programme in 2014, receiving a grant for the production of teaching audio systems for schools. After the signing ceremony, the representatives of Certes Technologies will introduce the process of production of their audio systems to the participants.
Since 2009, 126 business ideas have been supported in the framework of the programme Take-Off of total almost a million euro. This year, the grant programme will offer not only financial support for the winners, but also new knowledge available on the free seminars on topics relevant to entrepreneurs.
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18/01/16
Birthday of the Bar “Barschevsky & Partners”
We are really glad to wish many happy returns of the day to our colleagues – the Bar “Barschevsky & Partners”!
Birthday of the Bar “Barschevsky & Partners”
We are really glad to wish many happy returns of the day to our colleagues – the Bar “Barschevsky & Partners”! We wish prosperity and harmony, the goals to be achieved and wishes to come true!
Happy birthday, friends!
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12/01/16
Former Vice-President of Latvenergo was Fined for Nearly 50000 Euro
Riga District Court, considering one of the cases of bribery of officials of Latvenergo, sentenced the former vice-president of the company Aigars Melko and the head of Energy Consulting Andrey Livanovich to fines, but the technical director of production of Latvenergo Gunars Tsvetkovs was acquitted.
Former Vice-President of Latvenergo was Fined for Nearly 50000 Euro
Riga District Court, considering one of the cases of bribery of officials of Latvenergo, sentenced the former vice-president of the company Aigars Melko and the head of Energy Consulting Andrey Livanovich to fines, but the technical director of production of Latvenergo Gunars Tsvetkovs was acquitted.
Melko has to pay a fine in the amount of 48.1 thousand euro, but Livanovich - 37 thousand euro. The court has reclassified accusations - Melko is convicted for taking unauthorized benefits, but Livanovich for commercial bribery. The complete sentence will be available on January 25 and it can be appealed within 10 days.
The court also decided that against the company of Livanovich Energy Consulting will be applied measures of forced exposure in the amount of 400 minimum salaries or 148.000 euro.
The bribe was given for the fact that the best proposal would have the company Alstom Power Sweden AB in the tender of Latvenergo related to the reconstruction of hydroelectric units of the Plavinas Hydroelectric Power Station. The total amount of the bribe amounted to 627 thousand euro.
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05/01/16
Decrease in Oil Prices Contributed to the Profit of Lithuanian Companies
Lithuanian companies engaged in non-financial activities received 3.31 billion euro of pre-tax profit in the first nine months of this year, while the profit was 2.79 billion euro in 2014, but in the pre-crisis year of 2007 – 3.13 billion euro according to the Department of Statistics.
Decrease in Oil Prices Contributed to the Profit of Lithuanian Companies
Lithuanian companies engaged in non-financial activities received 3.31 billion euro of pre-tax profit in the first nine months of this year, while the profit was 2.79 billion euro in 2014, but in the pre-crisis year of 2007 – 3.13 billion euro according to the Department of Statistics. As economists say, profit has increased due to the decrease of energy resource prices, as written by a business daily Verslo žinios on Wednesday.
The Chief analyst at DNB Bank Indra Ganite-Pikchene said that the general macroeconomic trends are extremely bad this year, but deflation has helped the companies, as energy resources have dropped in price.
“Financial situation of Lithuanian companies is very good and maybe even too good this year. Record large liquid assets and undivided profits show that the companies are not able to successfully “employ” the profit; they lack ideas. Money is not be returned to shareholders and not invested”, said the Chief analyst of Swedbank Nerijus Machiulis.
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22/12/15
The Biggest Tax Debtors Owe Latvia Over 245 Million Euro
100 biggest tax debtors have owed Latvia a total of 245.107.000 euro at the beginning of December 2015 - 1% less than at the beginning of November, according to the State Revenue Service (SRS).
The Biggest Tax Debtors Owe Latvia Over 245 Million Euro
100 biggest tax debtors have owed Latvia a total of 245.107.000 euro at the beginning of December 2015 - 1% less than at the beginning of November, according to the State Revenue Service (SRS).
Including debt of 36 physical and legal persons exceeds 2 million euro, it is for one person more than at the beginning of November.
A private person Yevgeny Yakovlev has been considering to be the leader of the list of debtors for a long time – his debt increased to 19.16 million euro to the beginning of December. The second place takes the company Asiva with its debt in the amount of 9.705 million euro, the third one - AVT Nafta with 8.839 million euro.
A private person Vadim Mitrofanov with his debt in the amount of 8.804 million euro is the next one according to the amount of debt, the company Kràsainie låjumi with 8.474 million euro, the company Bebriko Ltd (former KMM Metàls) with 8.182 million euro, Eco Tyre Baltics with 7.689 million euro, Baltic lumber products with 5.467 million euro, Future vision with 5.129 million euro and the company East-West Transit with the debt in the amount of 4.041 million euro closes the top ten of tax debtors.
100 biggest tax debtors have owed Latvia a total of 247.64 million euro at the beginning of November 2015.
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16/12/15
“Rigas udens” Will Auction Property Located on Murjanu Street
The company “Rigas udens” will auction property located in Riga, on 70 Murjanu Street on January 21, as reported by "The Latvian Herald".
“Rigas udens” Will Auction Property Located on Murjanu Street
The company “Rigas udens” will auction property located in Riga, on 70 Murjanu Street on January 21, as reported by "The Latvian Herald".
The lot consists of a plot of land, water treatment plant, transformer substation, etc. Starting price is 625.000 euro.
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09/12/15
“Nordea Bank” Raised its Forecast of the GDP Growth in Latvia for 2015 up to 2.4%
Nordea Bank raised its forecast for growth of gross domestic product (GDP) in Latvia for 2015 from 2.2% to 2.4%, according to the latest economic review prepared by experts of the bank.
“Nordea Bank” Raised its Forecast of the GDP Growth in Latvia for 2015 up to 2.4%
Nordea Bank raised its forecast for growth of gross domestic product (GDP) in Latvia for 2015 from 2.2% to 2.4%, according to the latest economic review prepared by experts of the bank.
Latvia's GDP growth forecast for 2016 was reduced from 3.5% to 3%, for 2017 - increased from 3% to 3.5%.
“In 2015, Latvia will show the strongest GDP growth in the Baltic countries. Most likely, the growth will be about 2.4%, while in Lithuania it will be closer to 1.8%, in Estonia - about 1.3%. The following year, the growth rate of GDP in Latvia is predicted at a rate of 3% by Nordea Bank. The main engine of growth will be private consumption usually high in recent years, government spending will increase as well; positive trend there has also been observed in investments in the last six months, which would has to grow even more in the next year. However, export will not be strong despite the fact it will grow. The main reason for this will continue to be geopolitical disagreements and cautious environment of global investments. The import of goods and services will not allow achieving even greater growth of GDP, which thanks to the purchasing power of the population will continue to increase the trade balance deficit”, pointed out the economist of the Latvian branch of Nordea Bank Gynt Belevich.
The growth of the Estonian economics in 2016 is planning in the amount of 2.7% (in September it was planned at a rate of 3%), in 2017 - 2.9% (3.2%), of Lithuania - respectively 4% and 3.5 %.
The most accurate description of the Baltic economics now is as follows – “on the one hand, the stagnation, on the other - warm up”.
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04/12/15
Another Fast Food Giant “Pizza Hut” Will Start its Work in Latvia
Opening of another fast food giant “Pizza Hut” is planned in Latvia in the first quarter of next year, reported a representative of the company Vitaly Zhiauga.
Another Fast Food Giant “Pizza Hut” Will Start its Work in Latvia
Opening of another fast food giant “Pizza Hut” is planned in Latvia in the first quarter of next year, reported a representative of the company Vitaly Zhiauga.
More detailed information about the location and opening date will be available closer to the establishment`s opening day, according to his words.
We remind that Pizza Hut is a restaurant chain, consisting of more than 34 thousand outlets in 100 countries of the world. Pizza Hut is included in a corporation Yum! Brands. The same corporation owns the brand “Kentucky Fried Chicken” (KFC), one of the establishments of which was opened in Riga on August 28 of this year.
It is planned to spend more than a million euro to open both establishments according to the owner of franchises of Pizza Hut and KFC in the Baltic States Sigurd Arnar Sigursson.
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24/11/15
Baltic Logistic Solutions Will Establish Logistic Centre in Each of the Baltic States
The logistic company Baltic Logistic Solutions (BLS), which is the part of the Sanitex Group, expanded the warehouse complex in Riga this year, planning to complete construction of its own warehouse in Estonia next year, because if you want to compete in this segment, it is important to take care of your own infrastructure, investing in quality a lot, the business paper Verslo žinios reported on Monday about the plans of BLS.
Baltic Logistic Solutions Will Establish Logistic Centre in Each of the Baltic States
The logistic company Baltic Logistic Solutions (BLS), which is the part of the Sanitex Group, expanded the warehouse complex in Riga this year, planning to complete construction of its own warehouse in Estonia next year, because if you want to compete in this segment, it is important to take care of your own infrastructure, investing in quality a lot, the business paper Verslo žinios reported on Monday about the plans of BLS.
The complex in Riga was built this summer, where one of the warehouses is provided for the storage of frozen products, the other one for dry products which require cool temperature. In Estonia, the warehouse will be intended to store products requiring different temperatures. While it is believed that pre-investment in Estonia will amount to about 12 million euro. Also, it is discussed the possible further development in Riga.
“We see Latvia as the central tracks of warehouse of the Baltic Sea, Riga is convenient for distribution of imported goods to the markets of all Baltic States. Estonia, in its turn, is more intended for the local market, but as yet few products go from North to South”, said a member of the board of Sanitex and Baltic Logistic Solutions in Latvia Yovaras Pilk¸nis.
Turnover of the Lithuanian capital of the company Sanitex which began its activity in 1992 reached 249.057 million euro, profit - 1.881 million euro last year.
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19/11/15
Latvia's Export Remained at Last Year's Level
Latvia is the only state among the EU countries, which export remained at last year's level in January-September according to data released on Friday by the EU statistics department Eurostat.
Latvia's Export Remained at Last Year's Level
Latvia is the only state among the EU countries, which export remained at last year's level in January-September according to data released on Friday by the EU statistics department Eurostat.
The volume of export decreased in four countries during this period, including Lithuania for more than in anyone else - by 6%, in Estonia - by 3%.
In its turn, 23 countries increased the volume of export, including most of all Cyprus – by 23%, Ireland - 20%, as well as the United Kingdom and Croatia – by 11%.
Import increased compared to nine months of the last year in 21 countries in January-September most of all - to Ireland (+14%), Malta (+11%) and the UK (+9%).
The volume of import decreased to 7 countries: in Greece - by 11%, Finland - 8%, Estonia - 5%, Cyprus - 4%, Belgium - by 2%, Latvia and Lithuania - 1%.
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09/11/15
The Share Residents in Equity Capital of Latvian Banks Has Reduced
The share of residents in paid-up capital of Latvian banks decreased by 5.4 percentage points in the first nine months of 2015 - to 14.1% of the total share capital of banks, was reported to the agency BNS in the Financial and Capital Market Commission.
The Share Residents in Equity Capital of Latvian Banks Has Reduced
The share of residents in paid-up capital of Latvian banks decreased by 5.4 percentage points in the first nine months of 2015 - to 14.1% of the total share capital of banks, was reported to the agency BNS in the Financial and Capital Market Commission.
The paid-up capital of Latvian banks amounted to 2.068 billion euro at the end of September 2015, including the shares owned by residents of 291.719 million euro, or 14.1% (at the end of 2014 – 19.5%), to non-residents – 1.777 billion euro, or 85.9% (at the end of 2014 – 80.5%).
The paid-up capital of Latvian banks increased by 29.993 million euro (1.5%), including the share of residents has decreased by 105.42 million euro (26.5%), of non-residents has increased by 135.413 million euro (8.3%) in the first nine months of this year.
The share of Sweden in the share capital of Latvian banks amounted to 1.088 billion euro (52.6%), of Norway – 191.178 million euro (9.2%), the USA – 87.116 million euro (4.2%), Russia – 74.606 million euro (3.6%), the Great Britain – 70.943 million euro (3.4%), Ukraine – 69.746 million euro (3.4%), Malta – 47.111 million euro (2.3%), Switzerland – 44.155 million euro (2.1%), Luxembourg – 30.967 million euro (1.5%), Cyprus – 29.604 million euro (1.4%), Estonia – 3.465 million euro (0.2%), Iceland – 3.096 million euro (0.1%), the Netherlands – 1.531 million euro (0.1%) in late June.
There are 27 banks operating in Latvia, including 10 branches of foreign banks.
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02/11/15
Latvia takes the 40th Place in the Index of Welfare
Estonia takes the 31st, Latvia – the 40th, Lithuania – the 41st place out of 142 countries in the world in the traditional Index of Welfare.
Latvia takes the 40th Place in the Index of Welfare
Estonia takes the 31st, Latvia – the 40th, Lithuania – the 41st place out of 142 countries in the world in the traditional Index of Welfare.
The London-based Institute Legatum annually makes ranking, taking into account the economic situation of the country, the situation in the sphere of education, health, quality of state control and safety of citizens.
Among the EU, the Baltic States got a better estimate than Croatia (53rd place), Bulgaria (51st place), Romania (50th), Greece (49th), Hungary (45th). Neighbouring Russia has got the 58th position, while Belarus – the 63rd.
Like last year, the first place in the ranking took Norway.
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27/10/15
Forecast. Soon the Latvian Economics will be the Fastest Growing in the Baltic States
The Latvian economics will be the fastest growing in the Baltic States in the next two years - such a forecast is provided in the latest economic review “Eastern European Outlook”, prepared by SEB bank.
Forecast. Soon the Latvian Economics will be the Fastest Growing in the Baltic States
The Latvian economics will be the fastest growing in the Baltic States in the next two years - such a forecast is provided in the latest economic review “Eastern European Outlook”, prepared by SEB bank.
According to the bank`s forecast, the increase of gross domestic product (GDP) in Latvia will be 2.7% in 2016, but 3.5% in 2017.
The growth of GDP will be 2.7% and 3.4% respectively in Estonia, while the annual growth of Lithuania will be 3%.
According to authors of the review, the decline in the Russian economics, the sanctions introduced in respect of this country, as well as its response embargo will affect the Baltic States harder than the countries of Central Europe, because that is what they have the largest commodity turnover with Russia. “However, favourable conditions for consumption by households is the main reason, why the Baltic countries and the Central Europe countries will continue to demonstrate good resistance against the influence of the Russian-Ukrainian conflict and the weakness of their economics”, says the experts of SEB bank.
As it was already reported, the Latvia's GDP grew at constant prices in the first half of this year, according to not adjusted seasonal data by 2.3% compared with the first half of last year.
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19/10/15
The Fish Processors Resumed the Work, Dramatically Reducing Capacity
Most of the Latvian fish processing enterprises resumed work, but dramatically reduced production capacity, as reported by the Ministry of Agriculture.
The Fish Processors Resumed the Work, Dramatically Reducing Capacity
Most of the Latvian fish processing enterprises resumed work, but dramatically reduced production capacity, as reported by the Ministry of Agriculture.
“Now the greatest part of the Latvian enterprises processing fishing products, which are entitled to export products to the countries of the Customs Union, resumed work, but their production capacity is drastically reduced”, as specified by the Ministry of Agriculture referring to information provided by the Food and Veterinary Service .
The Ministry of Agriculture reminds that the export of Latvian fish production to Russia was terminated in August 2014 when Russia imposed an embargo.
According to the CSB, Latvia exported to Russia 15.9 thousand tons of fish products (by 17.2% less than in the same period of 2014), including canned food amounted to 13.0 million euro (for 25.4% less) in the first seven months of 2015.
As previously reported, “Rosselkhoznadzor” banned delivery of fish and fish products from Estonia and Latvia starting from June 4. The reason for this was violations of the veterinary and sanitary requirements identified by experts. In July, the Food and Veterinary Service of Latvia (FVS) said that Latvian fishermen eliminate violations revealed by “Rosselkhoznadzor” that was pointed out in the reply to the Russian establishment.
“Rospotrebnadzor” banned the import of canned fish products produced by five Latvian enterprises starting from August 1.
Several Latvian fish processing enterprises, including “Ventspils Fish Cannery”, Licis 93 and Brivais vilnis announced a temporary cessation of production and reducing the number of employees in the early summer.
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14/10/15
The Government will make Tax Discount to the Poultry Plant Kekava in the Amount of 3.7 Million for Investments
The government is planning to give a discount of Enterprise Income Tax (EIT) to the largest Latvian producer of poultry Putnu fabrika Kekava in the amount of 3.69 million euro in connection with investments made by the company in the modernization accordingly to the agenda of the government meeting on October 13.
The Government will make Tax Discount to the Poultry Plant Kekava in the Amount of 3.7 Million for Investments
The government is planning to give a discount of Enterprise Income Tax (EIT) to the largest Latvian producer of poultry Putnu fabrika Kekava in the amount of 3.69 million euro in connection with investments made by the company in the modernization accordingly to the agenda of the government meeting on October 13.
The amendments to the law providing the restoration of discounts on EIT for initial long-term investments made as part of a supported investment project came into force from January 1, 2011 to speed up the recovery of the economics by attracting investments to Latvia as specified in summary to the project of the appropriate order by the Ministry of Economics.
This regulation is valid until December 31, 2020. It provides discounts to taxpayers who have made investments in fixed assets used for their business activities in the supported priority fields and aimed to create new business locations, increasing of production capacity or services, launch of the new products not previously been produced by the taxpayer, or a substantial change in production process.
A discount of 25% is provided, if the total initial amount of long-term investments does not exceed 50 million euro, when it exceeds 50 million euro, the discount will be 15%.
The Ministry of Economics indicated that the application has been received for receiving of the status of the investment project “General Modernization of the Poultry Plant Kekava” in May, 2015. It is planned to invest 14.97 million euro (attributable costs 14.76 million euro) in the framework of the project; thus, the company will be entitled to the EIT discount in the amount of 3.69 million euro after the implementation of the project. The term of the project is 36 months at the beginning of June 2015.
“The additional taxes paid to the state budget will exceed the initially applied discount of 3.69 million euro already in the year of the project completion (in 2019), taking into account growth of the total turnover and increase of the paid taxes planned by the company”, said in the summary.
Also, the Ministry of Economics informed the government on the projected impact over the national economy of the investment project, as well as the financial calculations provided in the business plan of the company, but this information is restricted.
The government will consider the issue behind closed doors.
As previously reported by BNS, the turnover of Putnu fabrika Kekava amounted to 40.811 million euro, profit of 1.05 million euro in the last fiscal year, which lasted from July 1, 2014 to June 30, 2015. According to the company`s data, Putnu fabrika Kekava released 18.6 tons of products in 2014.
Putnu fabrika Kekava, which is engaged in processing of poultry, began work in 1974. It produces more than 65% of total poultry in Latvia by being the company of a full production cycle and growing of chickens. In total, the company produces more than 240 different products.
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09/10/15
The Ministry of Economics is going to Establish Order in the Funeral Industry
In Latvia, there is no law that would regulate the work of undertaker`s offices. The Ministry of Economics has decided to establish order in the industry - various agencies should prepare their proposals by the end of the year.
The Ministry of Economics is going to Establish Order in the Funeral Industry
In Latvia, there is no law that would regulate the work of undertaker`s offices. The Ministry of Economics has decided to establish order in the industry - various agencies should prepare their proposals by the end of the year.
In Latvia, there are about 260 firms providing funeral services. The quality control, related, for example, in which conditions the body has to be kept, is missing. The head of the Latvian Funeral Services Association points out: we need law that will regulate the industry. “We need that undertaker`s offices working honestly and conscientiously would not be left in a bad situation. Competition is high, as we speak, “self-employed persons” are engaged in the agency work - they have advantages, they can hide from tax authorities and do not to pay taxes, which results in lower prices”, said Edmunds Shtreyhfelds to TV5.
Among the problems of the industry are mentioned the methods of work of some colleagues, for example, when the undertaker`s offices offer their services directly in the hospital. “In other European countries it is unacceptable, when a person, for example, comes to get a medical death certificate, opens the door and there is already the exhibition of coffins, but the funeral agent meets him already”, said Shtreyhfelds to TV5.
The Competition Council analyzed the market and concluded that in addition to the lack of standards for the storage of bodies, this industry has non-transparent pricing, lack of information about the specific services and extra charges and unfair competition prevails in general. The Ministry of Economics has undertaken to solve the problems of the industry. “Consumers do not always choose the best offers. The Ministry of Economics sees the competence of many instances here. We met and agreed to work. The first problem is the lack of information about the services, how much it costs. We agreed that the Consumer Rights Protection Centre will pay special attention to this industry in the next year”, pointed out in the Ministry of Economics.
Speaking about the advertising of undertaker`s offices in hospitals, the Ministry of Health is instructed to deal with it. In addition, improvised morgues should disappear, for example, when the dead are stored in basements. “This is one more problem - treatment of the dead bodies, storage and transportation of the bodies. It is rather a matter of the State Health inspection, they are instructed to follow it and prepare proposals on how to change the situation”, explained the representative of the Ministry of Economics to TV5.
Another issue, which according to the Ministry of Economics requires solution is monopoly of Riga Crematorium. Cremation is carried out by the same firm for 19 years in a row. Responsible parties should prepare proposals for regulation of the industry by early next year. In addition, the State Revenue Service is also interested in funeral services, as the industry had brought only one and a half million euro last year to the state budget. According to the calculations of the State Revenue Service, it is too little.
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29/09/15
Estonia, Sweden, Latvia and Finland will be Engaged in Joint Export of Medical Technologies
The Tallinn Industrial Park Tehnopol opens the project of development of business in the field of medical technologies CH Health Access, in the framework of which companies from Estonia, Finland, Sweden and Latvia will jointly bring out medical technologies to new markets, based on common experience.
Estonia, Sweden, Latvia and Finland will be Engaged in Joint Export of Medical Technologies
The Tallinn Industrial Park Tehnopol opens the project of development of business in the field of medical technologies CH Health Access, in the framework of which companies from Estonia, Finland, Sweden and Latvia will jointly bring out medical technologies to new markets, based on common experience.
“The project brings together clusters of health protection of all four countries, based on the experience of which we will help enterprises to launch sales in new markets. Each cluster chose a distant market, where there is already a good partner, which has already formed working relationship, but the companies of a cluster already conducted primary sales”, delivered the press release words of the initiator of the project and director of Tehnopol of the medical technologies Külli Tärno.
Finnish cluster BioTurku will open a fast-growing South Korean market to others, Tehnopol and Latvian Enixus will base on their relationship with the USA (in Silicon Valley and Pennsylvania, respectively). Tartu Biopark will rely on its experience of the Indian market, but the Swedish medical technology cluster will help to enter the market in Uganda.
The project CH Health Access will be valid for 3 years, where 17-22 enterprises for each market will be selected in the region during this period. The programs focused on South Korea and the USA will start in the first quarter of 2016, but in May of the same year – the programs focused on India and Uganda.
The leading partner of the project CH Health Access is the Tallinn Industrial Park Tehnopol. Project partners are Tartu Biotechnology Park, Turusk Science Park, Enixus Baltics Latvia and cluster Swedish Medtech. The project is funded by the Central Baltic Interreg program.
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24/09/15
The Use of Tax for Micro-Enterprises Will be Banned in 37 Industries
The government decided today that tax for micro-enterprises will not be applied in 37 industries.
The Use of Tax for Micro-Enterprises Will be Banned in 37 Industries
The government decided today that tax for micro-enterprises will not be applied in 37 industries.
Today, the government approved Regulations “Industries, where the Tax Regime for Micro-Enterprises is not Applied”. The document lists areas of activity, in which the application of the tax regime for micro-enterprises will be banned.
The companies involved in timber industry, conducting supporting activities in forestry and extractive industry, producing tobacco products, by-products of coke and petroleum, pharmaceutical substances and preparations, metal, employed in the construction industry - construction of buildings and utilities, demolition of buildings, preparation of construction sites, installation of electrical installations and pipelines and in similar industries will not be able to pay a micro-enterprise tax and register as a micro-enterprise taxpayer.
Also, the preferential tax regime will be forbidden to use in areas related to the final cycle of construction works.
Also, the lists includes such industries as retail, taxi services, air transport, telecommunications, computer programming, information services, financial services, insurance, except the work of insurance agents and brokers, purchase and sale of your own property, legal and accounting services, consulting in the field of business and management.
The regime will not be able to use the companies providing architectural and engineering and technical, advertising, science and technology services, the exception is photo, translation services; agency of personnel search and selection, bodyguards engaged in administrative work of offices in administration and security, health, social care and the hospitality industry, engaged in social, political and other activities; conducting scientific work and preparing market research.
In addition, paying of a micro-enterprise tax will be banned in manufacturing of metal special ties, tools, vehicles, trailers and semi-trailers, etc.
It was earlier said in the Latvian Chamber of Commerce that a list of prohibited areas where it is forbidden to use a micro-enterprise tax prepared by the Ministry of Finance is absurd and does not achieve the purpose of ordering the business environment.
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15/09/15
“Latraps” Invested in the Facilities of Primary Processing of Grain
Cooperative society of agricultural services Latraps invested about 5 million euro in the facilities of primary processing of grain, informed BNS CEO of Latraps Edgar Ruzha.
“Latraps” Invested in the Facilities of Primary Processing of Grain
Cooperative society of agricultural services Latraps invested about 5 million euro in the facilities of primary processing of grain, informed BNS CEO of Latraps Edgar Ruzha.
According to his words, investments are made in primary processing facilities in Bauska, Eleja, Jaunpagaste and Aizkraukle.
All of these facilities received the grain and started to work in this season. Construction of the complex in Aizkraukle was planned to be completed by the beginning of July, but it started to work later and now it is working in testing mode due to amendments in Construction Law.
Latraps was established in 20000. It is the largest cooperative of cultivation of grain and rape in Latvia.
The turnover of Latraps amounted to 166.988 million euro - 18.1% less than in the previous fiscal year, the profit has decreased by 2.6 times - up to 2.022 million euro, as showed by the financial report in the Lursoft database in the fiscal year (which lasted from July 1, 2013 to June 30, 2014).
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