We are ready to overhaul bureaucratic obstacles and cooperate with private sector to attract investors - Silina

RIGA - To attract foreign investors, the Latvian government is ready to overhaul various bureaucratic and administrative obstacles and cooperate with the private sector, Prime Minister Evika Silina (New Unity) told the press on Monday after signing a memorandum on good corporate governance. 

Commenting the essence of the memorandum and further steps, the prime minister said that this is not a plan but rather an agreement on principles, what the government and the private sector want to do together. 

"The main thing we want to show with this is that we are very different, but we are ready to work together. I believe that we can achieve economic growth in the country if we listen to the private sector. We will not be able to advance the economy if we do not work together," said Silina.

The prime minister said that she sees opportunities for Latvia to implement good practices in the area of corporate governance, for example by introducing "green corridors" for large foreign investors.

Asked whether Latvia had a good example to aspire to, Silina mentioned state-owned companies in neighboring countries that have managed to expand beyond their respective country's territory. At the same time, the prime minister added that Latvian energy group Latvenergo is also making good profits in Lithuania.

Zlata Elksnina-Zascirinska, Chairwoman of the Board of the Foreign Investors' Council in Latvia (FICIL), said that signing the memorandum was the first step to continue attracting investment.

"It is a good start. We will continue to go step by step, to unravel the problems and solve them. It is a job both for private companies and the government," the FICIL head noted.

The memorandum of good corporate governance was signed by Silina and representatives of the Baltic Institute of Corporate Governance, FICIL, Finance Latvia Association, and The Red Jackets - an association of Latvian exporters. 

Under the memorandum, the government commits to take active steps to engage companies in promoting economic growth by setting more ambitious financial and non-financial targets related to innovation, investment and exports.

It plans to improve the selection process for board and supervisory board members, the choice of appropriate financial instruments, and the compliance of companies with good corporate governance principles.

The agreement confirms Latvia's commitment to improving corporate governance and promoting economic development, as well as moving towards a more responsible and efficient management of capital companies.