Bank of Latvia should develop more active dialogue between public administration and financial sector - Purgaile

  • 2025-01-24
  • LETA/TBT Staff

RIGA - The Bank of Latvia should develop more active dialogue between the public administration and the financial sector to achieve faster economic growth, Bank of Latvia Deputy Governor Santa Purgaile, the government coalition's nominee for head of the central bank, told LETA.

If appointed to the post, Purgaile intends to focus on improving and developing Latvia's financial sector so that it can make a greater contribution to the national economy. Purgaile stressed that by financial sector she means not just commercial banks, but also the FinTech sector and the capital market.

Purgaile would also want the Bank of Latvia as an organization to help see the potential of the Latvian economy and become a good adviser to the government, a promoter of dialogue between the sector and the government.

"A solution must be found for Latvia's economic development," said Purgaile.

Purgaile noted that a lot of that has been cone already while working alongside the previous Bank of Latvia governor, Martins Kazaks. At the same time, Purgaile pointed out that the dialogue between the government and the sector should be further developed, not by fighting each other, but by working more closely together.

According to the law, the Bank of Latvia governor is scheduled to nominate three candidates for the Bank of Latvia Council in March this year. Asked if she already has potential candidates in her mind, Purgaile said that this matter will be on top of her agenda as soon as she is appointed head of the central bank, but until then she would not "speculate on potential candidates' names".

Asked if she is confident about the necessary support for her in the Saeima, Purgaile said that all the parties of the government coalition have confirmed their support, so she has such a confidence.

Also, asked if she has the necessary security clearance for access to state secrets, Purgaile said that she does and will not need to apply for a new one.

As reported, the parties forming the Latvian government coalition have agreed to nominate the current vice president of the Bank of Latvia, Santa Purgaile, as a candidate for the Bank of Latvia president, Edmunds Jurevics, head of the New Unity faction in the Saeima, told LETA.

According to him, Purgaile has the conceptual support of the Saeima factions of the parties forming the government.

The coalition partners believe that Purgaile meets all the criteria set, with particular emphasis on her impeccable reputation and ability to fulfil her duties in full capacity from her first day in the office, both at the Bank of Latvia and in representing Latvia in the European Central Bank, according to a joint statement by the New Unity, the Union of Greens and Farmers and Progressives parties.

Andris Suvajevs, co-chairman of Progressives, told LETA that it was important for the party to agree on a candidate in the coalition who was equal to former Bank of Latvia President Martins Kazaks.

Purgaile's past experience and qualifications show that she will be a very good head of the Bank of Latvia, Suvajevs said. Purgaile meets all the criteria set by the coalition and the Bank of Latvia Law, the party leader stressed, admitting that Purgaile will be compared to Kazaks.

"Progressives can support Purgaile with a clear conscience", Suvajevs said.

As Harijs Rokpelnis, the head of the Union Green and Farmers faction in the Saeima, told LETA, Purgaile meets all the criteria set by the coalition. Purgaile also meets the issues that are important for Greens/Farmers and that concern the development of credit unions in Latvia.

Rokpelnis stressed that the previous President of the Bank of Latvia, Martins Kazaks, had a different view on credit unions from Purgaile.

Purgaile holds a Master's degree in International Economics and Business. She has extensive experience in the financial sector, having served as the chair of the Financial and Capital Markets Commission from 2019 to 2022 and held various senior positions in the banking sector, Jurevics noted.

The coalition partners plan to meet Purgaile again on Monday, January 27, at a coalition cooperation meeting to formally nominate her, as well as to give Purgaile the opportunity to present her vision for the future of the Bank of Latvia to the media and answer questions.

After the official nomination, Purgaile will meet with all the parliamentary groups.