With votes from the opposition, on Thursday, the 6th of February, Mārtiņš Kazāks was re-elected as the President of Bank of Latvia for another term.
67 Saeima deputies voted in favour of Kazāks and 18 voted against. Four Saeima deputies abstained in the vote.
Saeima deputy Edvards Smiltēns said that in this geopolitical situation, a stable and professional management for the Bank of Latvia is critically vital.
He said it is necessary to work to ensure low inflation and to prepare Latvia for financial challenges. Smiltēns stressed lending should be more accessible to ensure accessibility of financial services in regions.
It is necessary to perform repairs of financial services after the last round of repairs, he added.
The leader of the Saeima faction of Progressives party Andris Šuvajevs reminded that the vote from his party “clearer than clear”, because they had proposed voting for Kazāks two months ago.
He said Kazāks was the one who ensured the Bank of Latvia is recognised in Europe. He invited doing more work to lower inequality in Latvia and raise welfare.
Šuvajevs said “this process” should conclude with a discussions about the process of appointing the management of the Bank of Latvia. He suggested using services of another institution.
Latvia in First Place member Linda Liepiņa said her party never changed its mind on the topic of the next head of the central bank. She stressed that the parliament had all the opportunities to elect the best possible candidate.
Liepiņa, looking back at the selection procedure, stressed that it prevents better candidate from participating.
“Shame, shame and shame – this is what the style employed by your coalition is associated with,” said Liepiņa, criticising the existing government in Latvia.
Liepiņa also turned to the Union of Greens and Farmers, saying that she does not understand the party’s motivations in the President of the Bank of Latvia issue.
“Go and apologize to the people involved,” she told members of the Union of Greens and Farmers.
Saeima deputy Artūrs Butāns, in his invitation to support Kazāks as President of the Bank of Latvia, said another important topic to address is financing in regions, because at the moment it is too low. It is also necessary to work on the availability of cash.
“We, in our support of Kazāks, will remain demanding,” said Butāns, adding that one of the solutions is non-bank lenders and their monitoring.
He reminded that, in the past, Kazāks was not afraid to criticise the government by pointing out problems in the tax policy, which is something some politicians did not appreciate.
Opposition member Kristaps Krištopans said Kazāks is not a suitable candidate. He mentioned, among other things, that nothing has been done to increase competition between banks, adding that banks in Latvia have earned a lot in recent years.
Ramona Petraviča from Latvia in First Place criticized the selection process. “It was like buying shoes,” she said about the process, adding that Latvia’s economy is in stagnation and investors complain that banks are too closely monitored and excessively bureaucratic.
For Stability party’s leader Aleksejs Rosļikovs stressed that families are unable to get loans to purchase housing. “Everything is being done to ensure the youth abandon this country,” he said.
The politician said Kazāks has not done anything to improve the economic situation to make residents feel financially secure.
Prime Minister Evika Siliņa on X (formerly Twitter) congratulated Kazāks with elected for another term and reminded that his institution plays a major role in ensuring the country’s financial stability, promotion of economic development and improvement of trust bus on a domestic and international level. “I wish you success with a professional and clear vision to continue managing Latvia’s financial policy, strengthening our economic security and sustainable growth!” she wrote.
More on this topic: New Unity and Progressives give up and decide to support Kazāks to lead Bank of Latvia
Kazāks holds a Bachelor’s degree in economics from the University of Latvia, a diploma in economics from the University of Cambridge, and a Master’s degree in economics and a PhD in economics from the University of London.
Kazāks previously worked as chief economist in the Macrofiscal Analysis and Forecasting Department of the Ministry of Finance, as a research assistant in the Riga office of the International Research and Exchanges Board (IREX).
He was also assistant researcher at the Social Sciences Department, School of Slavonic and East European Studies, University College London.
From 2005, Kazāks was the chief economist of Swedbank in Latvia and the chief macroeconomic analyst in the Baltics, but from 2010 to August 2018 – the deputy chief economist of Swedbank Group, the chief economist of Swedbank Latvia and the head of the Baltic Macroeconomic Research Division of Swedbank Group.
Kazāks has been a member of the Council of the Bank of Latvia since August 2018, but in December 2019, the Saeima elected him as the President of the Bank of Latvia with 76 votes.