Saeima adopts con­tro­ver­sial amend­ments to Credit In­sti­tu­tions Law

The Baltic Times - - BALTIC NEWS - LETA/TBT Staff

Saeima, the Lat­vian par­lia­ment, has adopted the con­tro­ver­sial amend­ments to the Credit In­sti­tu­tions Law that had been sent back to the par­lia­ment for re­vi­sion by Pres­i­dent Rai­monds Ve­jo­nis. The amend­ments were adopted with­out any changes.

The de­ci­sion was made with 49 votes to 20, while 15 law­mak­ers did not par­tic­i­pate in the vote. The de­ci­sion was sup­ported by law­mak­ers from the Har­mony party, the Union of Greens and Farm­ers, the Na­tional Al­liance, For Latvia From the Heart. Unity law­mak­ers, Il­mars Latkovskis and Ro­mands Naudins (Na­tional Al­liance) voted against the de­ci­sion.

Re­turn­ing the amend­ments to the par­lia­ment Ve­jo­nis noted that the leg­isla­tive amend­ments de­vel­oped along­side the on­go­ing liq­ui­da­tion process of Trasta Komer­cbanka and court’s de­ci­sions on ap­point­ing the ad­min­is­tra­tor, cause sus­pi­cion of the wish to af­fect these pro­cesses.

As re­ported, Saeima in early June adopted the amend­ments to the Credit In­sti­tu­tions Law in the fi­nal read­ing. 56 Saeima mem­bers voted for the amend­ments - mem­bers of the Union of Greens and Farm­ers, Na­tional Al­liance, Har­mony, and For Latvia from the Heart. Twenty MPS were against the amend­ments - Unity mem­bers and Ar­tuss Kaimins (KPV LV), while Ed­vards Smil­tens (Unity) ab­stained. An­other seven­teen Saeima mem­bers, rep­re­sent­ing the Greens/farm­ers, Unity, Lat­vian Al­liance of Re­gions and Har­mony, did not vote.

Ve­jo­nis re­turned the con­tro­ver­sial amend­ments to the Credit In­sti­tu­tions Law back to the par­lia­ment for re­vi­sion, point­ing at con­cerns about the true goal of the amend­ments.

The amend­ments stip­u­late that per­sons who, for the pre­ced­ing two years, were au­tho­rized by a cred­i­tor to rep­re­sent him or her in re­la­tions with a credit in­sti­tu­tion, may not be ap­pointed the given credit in­sti­tu­tion's liq­uida­tor. A sim­i­lar re­stric­tion will ap­ply to credit in­sti­tu­tions' in­sol­vency ad­min­is­tra­tors.

Ve­jo­nis said that the amend­ments con­sid­er­ably nar­row the range of pos­si­ble can­di­dates for the liq­uida­tors and in­sol­vency ad­min­is­tra­tors for credit in­sti­tu­tions, and re­stricts the op­por­tu­nity to find the best can­di­date for the liq­ui­da­tion or in­sol­vency process. The rea­sons for such amend­ments re­main un­clear.

Ve­jo­nis in a let­ter to Saeima speaker Inara Murniece un­der­scored that in­suf­fi­cient su­per­vi­sion and con­trol of in­sol­vency pro­cesses and pos­si­bil­i­ties to use in­sol­vency pro­cesses for ma­li­cious rea­sons cause con­sid­er­able losses to in­di­vid­u­als and the state. It fur­ther in­creases dis­trust in busi­ness en­vi­ron­ment and threat­ens at­trac­tion of in­vest­ments to the na­tional econ­omy, the pres­i­dent said.

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