In order to attract foreign investors, the government is prepared to change various bureaucratic and administrative obstacles and cooperate with the private sector, said Latvian Prime Minister Evika Siliņa after signing the memorandum on the implementation of the principles of good corporate governance in capital companies on Monday, the 29th of April.
Commenting on the memorandum, the PM said it’s not a plan, rather an agreement on principles the state and the private sector want to accomplish together.
“The main thing we want to prove is that we are diverse but prepared to cooperate. I believe we can achieve economic growth for our country if we listen to the private sector. We won’t be able to achieve economic progress if we don’t cooperate,” said Siliņa.
The PM said that she sees opportunities for the state to implement good practice in the management of capital associations. This includes the adoption of “green corridors” for larger foreign investors.
When asked if there is a good example for Latvia to follow, Siliņa mentioned that neighbouring countries are the example when it comes to managing state capital associations, as they have proven that state companies can expand far away from their country’s territory and attract additional investments. At the same time, the PM said Latvenergo is already earning well in Lithuania.
Foreign Investors Council in Latvia board chairperson Zlata Elksniņa-Zaščirinska said the signing of the memorandum is the first step to continue attracting investments.
“The beginning is good. We will continue going step by step, discuss and resolve problems. There is enough work for private companies and the government,” said the head of FICIL.
LETA previously reported that the prime minister and organisations representing businesses would soon sign an agreement on the implementation of good corporate management principles in capital associations.
The agreement itself will be signed by the Latvian PM, representatives of the Baltic Institute of Corporate Governance, the Foreign Investors Council in Latvia, the Financial Industry Association and the Latvian Exporters Association “The Red Jackets”.
The agreement provides for multiple development scenarios to help attract state and private capital associations to assist with growth of the national economy.
It provides for active state action to involve capital companies in promoting economic growth by setting more ambitious financial and non-financial goals related to innovation, investment and export.
Improvement of the process of selection of members of the board and council, selection of appropriate financial instruments, as well as compliance of the activities of capital companies with good corporate governance principles are planned as well. The agreement confirms Latvia’s commitment to improve corporate governance and promote economic development, as well as to move towards more responsible and efficient management of capital companies.
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Latvian government promises to change bureaucratic obstacles to attract foreign investors
