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Vejonis does not promulgate controversial amendments to Credit Institutions Law
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    Vejonis does not promulgate controversial amendments to Credit Institutions Law

    RIGA, June 16 (LETA) – Latvian President Raimonds Vejonis on Friday 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 President’s Chancellery reported.

    "I appreciate that the insolvency process regulations are being improved. However, development of norms related with prevention of conflict of interests in line with the liquidation process of Trasta Komercbanka and the court’s decisions on appointing insolvency administrators for the process cause suspicion about an intention to influence these processes," Vejonis said.

    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.

    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.

    The Saeima faction of the Unity party, and the New Conservative Party that is not represented at the parliament said they would call on Latvian President Raimonds Vejonis not to promulgate the controversial amendments to the Credit Institutions Law.

    • Published: 16.06.2017 13:24
    • LETA
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