Baltic flops of 1999

Jan 06, 2000

Call it deja vu, call it the product of a banking system in need of
reform, or blame it on too large an investment in Russia's financial
problems, but another Latvian bank went bust last March.

Rigas Komercbanka, the fourth largest bank in Latvia, collapsed,
leaving private investors with insurance on up to 500 lats of
savings. Bank administrators first blamed the press and then
overexposure to Russian banking markets.

As one big bank sank (and eventually rose), a precursor, Banka
Baltija, which collapsed in 1995 and crashed the country's economy,
claimed its liquidator and, still to be determined, the judge
presiding over the criminal case of three of BB's former executives.

At least that saga lasted a few months longer than the short reign of
Vilis Kristopans who started his work in March, and by June, had
passed through Parliament's exclusive revolving door for former prime
ministers.

While politics may be, at the root, a popularity contest, the victors
don't necessarily get the spoils: Just ask Edgar Savisaar.

His Center Party, the most popular party in Estonia, captured more
seats than any other in Estonia's parliamentary elections and in
Tallinn's City Council elections, but twice failed to form a
coalition government.

While Mr. Savisaar sat on the sidelines, the lean, mean, EU-bound
Estonian government machine failed to convince the public of EU's
importance: Only 38 percent would vote for membership if a vote were
held tomorrow.

Maybe Sigitas Kaktys missed the lessons on open and transparent
government, but his ignorance was not bliss in December.

Lithuania's former minister of administration reforms and municipal
affairs was forced to step down after he neglected to report a land
purchase to the tax inspectors.

Two months earlier, the oil company Maziekiu Nafta shut down its
refining facilities in October because of a lack of crude in one of
various sub-plots of the Williams affair.

The U.S. based oil company had purchased a majority share of Maziekiu
Nafta, besting Russian-owned Lukoil, which prompted Russia to halt
all of its deliveries to Lithuania.

Parliament Chairman Vytautas Landsbergis was elected by the people as
the most unpopular politician for every month during 1999, said
social research firm Vilmorus.

The chairman has come under more and more public criticism for the
failed economic program of the Conservative Party he still leads. He
has suffered for mistakes in declaring his property; for ideas of
oppressive press laws; for advocating scandalous Minister of
Administration Reforms; and Municipal Affairs Sigitas Kaktys for a
plot of land he got at rock-bottom prices due to his being a
signatory to the independence act.

In December Landsbergis sold this land and the money went to charity,
but public opinion was somehow not impressed. Most agree that
Landsbergis with his didactic preaching simply fails to be "just
another guy in the street," a popular image among Lithuanian
politicians and people.

Compiled by Blake Lambert and Rokas Tracevskis.

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