Saeima deputies’ inability to approve a new Governor of the Bank of Latvia raises confusion about the situation in this institution, said Chairman of Finance Latvia Uldis Cērps in an interview to TV3 programme 900 seconds.
“This is solely a result of the political processes,” said Cērps, commenting on the failure of Saeima deputies to agree on the next head of the country’s central bank.
He said the Bank of Latvia has a dozen different functions and it is necessary to hold we need meaningful discussions about what we want to achieve in each of these ten functions, how well Bank of Latvia has performed these tasks in the past years, and what should be done in each of these ten functions in the future.
Cērps added that Finance Latvia is prepared to work with both the Mārtiņš Kazāks, whose term as Governor of the Bank of Latvia is now over, and previously proposed candidate Altum manager Reinis Bērziņš. “We are prepared to work with both of them,” said Cērps.
Nevertheless, he said Finance Latvia had a very good working relationship with Kazāks even though there were topics on which their opinions did not align.
According to Cērps, Kazāks has done a lot to restore the reputation of the Bank of Latvia. He has also contributed a lot to the completion of the so-called financial sector’s capital repairs and implemented the addition of the Finance and Capital Market Commission to the Bank of Latvia. The association also has a very good working relationship with Altum.
“It is very clear that we cannot be in a situation year after year where we have budget expenditures higher than budget revenues and when the public sector is leading the way in wage growth,” stressed Cērps, at the same time, adding that finding ways to reverse this situation is primarily a task for the government, but Bank of Latvia can also play an active role in formulating such decisions that are strategically very crucial for the country.
When asked if he was asked to run as candidate for the post of Governor of the Bank of Latvia, Cērps said no. When asked if he would accept this post if it was offered, Cērps said he would rather not answer hypothetical questions. At the same time, he said he has the “best job in the world” right now.
The 21st of December 2024 marked the end of Kazāks’ term as the head of the Bank of Latvia.
On the 19th of December 2024, however, the Saeima failed to elect a new head for the country’s central bank. Because of this, Latvia has temporarily lost voting rights in the Council of the European Central Bank.
Until a new Governor of the Bank of Latvia is elected, Vice-Governor Māris Kālis will serve as acting head of the Latvian central bank.