According to the Riga-based newswire, the decision was made with 73 votes to three, with 17 abstentions.

BNS reported that Vjačeslavs Dombrovskis from ruling centrist Zatlers Reform Party (ZRP) voiced surprise about why the vote had to be rushed and could not wait until next week, when the faction will have formulated its opinion about the candidate. “It is surprising why such an important issue has to be made in such a rush,” he was quoted as saying.

Nevertheless, he said that ZRP faction tends to support Zakulis in the position and called on colleagues to vote on his approval, but pay more attention to discussions in the future.
According to BNS, parliament budget and finance committee chairman Janis Reirs said that there had been enough time to assess the candidate for the head of FKTK. Reirs underscored that FKTK has to solve important matters and needs a head immediately.

Zakulis told BNS that one of his first tasks in the new office would be studying the case of Latvijas Krajbanka, which had collapsed at the end of last year. “I am going to review all aspects of the case, all measures that have been taken,” he was quoted as saying.

In February the FKTK will have to look for a new council member to replace Janis Placis, who tendered his resignation in late November last year, Zakulis said, adding that at first the watchdog will look for suitable candidates to the post among its current staff.

The new FKTK head said that the communication mechanism was another subject that he intended to deal with in the new office, BNS reported. He plans to study the existing communication structure and procedures, Zakulis said.

According to BNS, Finance Minister Andris Vilks and Bank of Latvia Governor Ilmars Rimševičs have proposed Zakulis as the new FKTK head to replace Irena Krumane, whose resignation was accepted by the parliament on December 8, 2011.

The newswire reported that Zakulis currently heads the Security Department at the Latvian electronic services provider Lattelecom. He has a Bachelor’s degree in economics and a Master’s degree in business management, and has extensive knowledge about the finance sector. He also has experience in cooperation in with the national security and law enforcement agencies, a qualification of a legal expert and experience in prevention of money laundering, BNS reported.
In 1995-2000 Zakulis worked in the Constitution Protection Bureau (SAB), and in 2000-09 he worked as the head of the security department in Latvia’s Swedbank, said the Finance Ministry.

BNS also reported that previous FKTK head Irena Krumane tendered her resignation to the parliament on November 28, 2011, following the collapse of Latvijas Krajbanka and the parliament accepted her resignation on December 8.

FKTK is responsible for supervision of banks, credit unions, insurance companies, insurance brokers, players of the financial instruments market, and private pension funds in Latvia.

According to the Rīga-based newswire, public funding will be granted to those political parties that won more than 2 percent of votes in the last general elections.

All six parties meeting the requirement have already applied for public funding, including LPP/LC, BNS reported, which has decided to disband. Andris Vitenburgs, a spokesman for the Corruption Prevention and Combating Bureau (KNAB), told BNS earlier that in line with the law a party that has become defunct is no longer eligible to public funding.

KNAB is planning to release the first payment to the political parties by January 15, Vitenburgs told BNS.

The eligible political parties will receive 50 santīms (EUR 0.71) per vote in government funding.
According to BNS, the six parties eligible to co-funding from the national budget include the leftist pro-Russia Harmony Center, which won 28.4 percent of votes; the centrist Zatlers Reform Party (20.8%); the center-right Unity (18.8%); the nationalist conservative National Alliance (13.9%); the Greens and Farmers Union (12.2%); and LPP/LC, which failed to win seats in parliament, but with its 2.4 percent of votes is eligible to receive funding from the national budget.

The annual allocation of 442,322 lats (EUR 629,371) will be distributed among the above six parties until 2014, BNS reported, and the annual funding will be released in four installments. The Harmony Center will receive 129,965 lats (EUR 184,924); the Zatlers Reform Party, 95,428 lats (EUR 135,782); the Unity party, 86,281 lats (EUR 122,767); the National Alliance, 63,604 lats (EUR 90,500); the Greens and Farmers Union, 55,978 lats (EUR 79,649); and LPP/LC, 11,065 lats (EUR 15,744).

According to BNS, the parties can use the public funding for rent, communications services, wages, research and educational initiatives, as well as election campaigns.

BNS also said that public funding can be denied to a political party if it has been punished for exceeding the legal campaign spending limit by more than 10 percent or it has failed to declare transactions or donations exceeding 100 minimum wages.

Public funding for a political party can also be suspended if the party disbands or fails to submit the annual report or election declaration, BNS reported.

According to the Riga-based newswire, the president said that economic shocks, which entail a drop in living standards and uncertainty about the future, create a fertile soil for internal strife and that in such atmosphere it is much easier to sow discord and create confrontation.
“In 2011 we saw experiments with the basic law of our state – the Latvian Constitution. The proposal to dissolve parliament brought about legally and politically dangerous situations, but they did not threaten the foundations of the state and gave an opportunity to the people to make its own decisions. Meanwhile, the proposal to make Russian a second state language in Latvia is targeting the very foundations of the state and the core of the Constitution,” the president was quoted as saying.

In his words, cited by BNS, the constitutional foundations of the Latvian state – its territory, language, and democracy can only be seemingly changed. “They have been written by our compatriots’ blood, to change them would mean to abolish this state and leave Latvians without Latvia,” Berziņš was quoted as saying.

According to BNS, the president himself is not going to take part in the forthcoming referendum on the state language in Latvia in February, because he considers this to be an absurd enterprise. In the New Year address to the nation, however, he said that it is up to the each citizen to decide whether to take part and how to vote in the referendum, but that a vote for another state language would amount to a vote against Latvia as a state, BNS reported.

“Let’s think why this is happening now and who benefits from such a split in society. The two decades of independence have shown that Latvia is capable of becoming a state with a united nation, but it is not enough to know the language to ensure integration and build a united nation. Shared values, mutual respect, human understanding, and tolerance are the foundation on which we must build Latvia’s future. If we are unable to agree, we will be replaced by others,” the Latvian president was quoted as saying.
BNS also reported that Berziņš identified a number of tasks for Latvia’s politicians, especially stressing the necessity to keep people from leaving Latvia in search of a better life in foreign countries.

“Politicians and the state authorities must work to stabilize the country’s finances, create a modern education system, facilitate businesses and entrepreneurship, but most importantly, to stop our people from leaving the country, because without people there will be no Latvia,” Berziņš was quoted as saying.

In his New Year speech, the president, who is a former banker, also touched upon issues in the banking sector. According to BNS, President Berziņš believes that the sector’s oversight is in need of improvement.

“The shutdown of Latvijas Krajbanka [Latvian Savings Bank] is a striking example of how a bank of one system indirectly affects another, threatening to trigger panic in the whole banking sector. It is also prompting our state security and supervision institutions to reconsider their cooperation,” Berziņš was quoted as saying, adding that responsibility for Latvijas Krajbanka lies with all institutions involved in ensuring the stability of the banking system.

In conclusion, the president wished peace and harmony in every family, fulfillment of dreams and expectations, as well as health and strength to the people in 2012.

Link to full text of speech:

http://www.president.lv/pk/content/?cat_id=605&art_id=18947.

In his speech on New Year’s Eve, Latvian Prime Minister Valdis Dombrovskis underscored that Latvia has overcome the financial crisis and called on people to take part in the upcoming referendum on the official language in Latvia, the Baltic News Service reported.

According to the Riga-based newswire, Dombrovskis said that we have a reason to feel that a good job has been done and the fiscal consolidation has been completed.

“Tonight we can say with pride that the Latvian nation has acted wisely and considerately, has overcome the financial crisis and has renewed the national economic growth,” he was quoted as saying, pointing at the successfully completed financial assistance program.

In the speech, Dombrovskis said he believes that Latvia’s future now is much better than the future of many other European countries.

“A tough, but significant stage in Latvia’s history has been completed. We have to take these lessons with us in the future. Politicians may not make decisions that are good in a short term, but irresponsible in the long term. We have learned that we can achieve good results if we concentrate resources, act rationally and are ready for changes. The economy has been restructured, the budget has been arranged, the state administration has been downsized. We are ready for further growth that will ensure the nation’s welfare. Today the future of our country is much more stable than in many other European countries,” he was quoted as saying.
According to BNS, the prime minister also said that there is no reason to become self-conceited and work has to be done to ensure stable and sustainable economic growth in the future, avoiding another economic bubble.

Dombrovskis also spoke about problems in the European Union (EU), BNS reported, saying that 2012 will decide the direction of its further development.

“We have to work for Latvia to be together with those countries who will make the core of the future Europe. Latvia should support closer cooperation of European countries. Latvia’s place is not in the suburbs of Europe, not on its Eastern bridge, but in the core leading Europe forward. Europe is Latvia’s geopolitical environment and we have common values,” he was quoted as saying.
BNS reported that the prime minister also invited all Latvian citizens to take part in the upcoming referendum, initiated after a signature collection campaign in support of Russian as a second state language, and show loyalty to the national identity of the Latvian state and Constitutional values.

“The Latvian language is and will be the foundations of this identity as well as our trust in democracy and independence of the country. The referendum should prove that Latvia’s basic values are important not only for Latvians, but also for those representatives of minorities who belong to this country. A united society is a measure of matured democracy. And it is an important pre-condition for Latvia’s economic growth,” the prime minister was quoted as saying.
The prime minister called on people to set goals for 2012 — both private goals and goals for the country. “I call on each Latvian patriot to make at least one selfless deed to strengthen our country,” he was quoted as saying.

Link to full text of speech: http://www.mk.gov.lv/en/aktuali/zinas/2011/12/311211-pm-01/

BNS previously reported that the Lithuanian government on November 16 decided to take over 100 percent of shares in financially troubled Snoras bank, acting on the information from foreign sources about a huge shortage of securities in the assets of the bank worth more than one billion litas (EUR 290 million). Russian businessman Vladimir Antonov used to hold a controlling stake in Snoras which owns slightly more than 60 percent in Latvijas Krājbanka.
Latvijas Krājbanka ranked ninth among 31 banks in Latvia in terms of assets at the end of September this year, BNS reported.

“FKTK will ask the Prosecutor General’s Office to turn to the Swedish Economic Crime Authority with an aim to recover Latvijas Krājbanka money that the Snoras owner might have invested in his projects, including Saab. The Swedish Economic Crime Authority has confirmed its readiness to help recover this money,” Krumane was quoted as saying.
According to BNS, FKTK deputy head Janis Brazovskis said in an interview with Latvia’s LNT commercial TV channel earlier that 100 million lats (EUR 142 million) worth of Latvijas Kajbanka money, pledged to several foreign banks, was used to raise the bank’s equity capital in September, as well as for Antonov’s business projects, including his plan to take over Swedish carmaker Saab.

According to Swedish media reports, cited by BNS, Antonov had intended to use the money stolen from Snoras and Latvijas Krājbanka to purchase Saab.

BNS reported that the suspension of Latvijas Krājbanka operations and the ongoing probe launched by the Latvian law enforcement authorities were caused by suspicions that about 100 lats worth of the bank’s assets have been unlawfully pledged to third parties in foreign countries.

The newswire previously reported that on November 21, the Latvian financial watchdog, the Finance and Capital Market Commission (FKTK), decided to suspend Latvijas Krājbanka from provision of all financial services. The decision has been made due to a shortage of assets discovered at the bank, the watchdog was quoted as saying, adding that the Prosecutor General’s Office had been notified about it. The State Police has launched a criminal procedure in which Russian businessman Vladimir Antonov, who was a council member of Latvijas Krājbanka and controlled the bank through its Lithuanian parent bank, Snoras, has the status of a suspect.

The FKTK is also going to submit to the court an insolvency application against Latvijas Krājbanka, probably on Monday, November 28.

Snoras was taken over by the Lithuanian government on November 16, BNS reported, acting on the information from foreign sources about a huge shortage of securities in the assets of the bank worth more than one billion litas (EUR 290 million). On November 24 the Lithuanian central bank declared Snoras as insolvent and said it would ask the court to open bankruptcy proceedings against the nationalized bank.

Snoras holds slightly more than 60 percent of Latvijas Krājbanka, which ranked ninth among 31 banks in Latvia in terms of assets at the end of September this year, BNS reported.

According to the Rīga-based newswire, the decision was made with 92 votes, and there were no votes against and no abstentions. The parliament greeted the new KNAB head with applause.

BNS reported that a special commission picked Streļčenoks as the best candidate to the KNAB chief out of a total of four candidates shortlisted for the second round of the tender to fill the vacancy. As many as 13 applicants participated in the first round of the tender.

According to BNS, Streļčenoks, 32, has worked at KNAB since the foundation of the organization, in 2003. Initially he was a senior expert, but since 2006 he has been the deputy head of the KNAB Department for Control over Activities by State Officials. Since 2005 Streļčenoks has lectured on corruption prevention in the State Administration School. He has also taken part in a group of international experts, analyzing whether Kyrgyzstan has met its liabilities in corruption prevention and combating.

BNS previously reported that the government unanimously supported Streļčenoks as the candidate for KNAB head in its meeting on November 15.

After hearing about the ZRP’s differing position, President Bērziņš insisted that as broad a coalition as possible should be established in the name of government stability. That is why he recommended that Dombrovskis establish a Cabinet of Ministers in which all of the political forces which were elected to the 11th Saeima are represented. The President argued that representatives of all of these forces have confirmed their readiness to work in a coalition led by Dombrovskis, adding that representatives of Harmony Centre (SC) and the ZZS said so during meetings at the Rīga Castle on October 18 and 19.

Dombrovskis and Dzintars confirmed their readiness to evaluate the President’s suggestion, and for that reason President Bērziņš left the room for a while. After exchanging views the three political forces still could not agree on an expanded coalition, and so they stayed with the initial offer. They said that all three forces will take responsibility for the 50+6 model for the coalition and for all of the people who are being nominated for ministerial posts. This position was also confirmed by Unity Party chairwoman Solvita Āboltiņa.

At President Bērziņš’s suggestion, each person nominated for the Cabinet of Ministers by Dombrovskis’s, Zatlers’s, and Dzintars’s political forces was evaluated individually, requiring a confirmation of responsibility from each party’s representative. The President also expressed views and doubts about certain candidates in terms of their appropriateness for the relevant job.

The initial proposal on a coalition involving ZRP and SC failed, and the various “lines in the sand” which parties have drawn around themselves have become an insuperable obstacle against a serious approach to serious issues. Because of this, and in line with the negotiations that he has had over the past several days with representatives of parliamentary parties, President Bērziņš feels that any further delay in the establishment of the government can seriously endanger work on next year’s national budget, as well as on other important issues. Accordingly, the current coalition model is the only one which can realistically be approved. At the same time, however, the President continues to believe that the decision does not keep parties from working to improve the model.

“The first serious test for the coalition in terms of its ability to get work done will be the vote on the national budget in 2012. That must not be an experiment with the country or endanger our international obligations,” said President Bērziņš.

He went on to say that “given that all three parties in the reform and rule of law coalition have confirmed that they are prepared to take responsibility for the six MPs who left the ZRP, I have taken the decision to ask Valdis Dombrovskis to establish the Cabinet of Ministers.” Bērziņš also said, however, that the vote on the government in Parliament will be possible only after the relevant institutions have submitted their views on the candidates for ministerial posts and the President has received a draft of the Cabinet’s operating declaration.

President Bērziņš remains convinced that as broad a coalition as possible must be established so as to ensure the sustainable development of the country. This, he believes, will ensure that all of the political forces in the Saeima will take responsibility for what happens in Latvia.

On Tuesday, October 18, Solvita Āboltiņa was elected as the Speaker of the 11th Saeima; thus she has become the second Speaker of the Saeima in the history of Latvia who has been re-elected as Speaker after the election of a new parliament, reported the Saeima Chancellery press service.

By a secret ballot, 51 MPs voted for and 45 MPs voted against the candidacy of Āboltiņa for the position of the Speaker of the 11th Saeima.

“The Speaker of the Saeima does not represent only his/her political party; the Speaker represents the entire Saeima and the interests of all elected political parties,” said Āboltiņa to members of the Saeima after her election. “Despite the good and strong determination of one individual, nothing can be achieved without support. Latvia needs our joint efforts. I would like to thank you for expressing your confidence in me; that is a great responsibility, and I will do my best not to betray it.”

Before being elected as the Speaker of the 11th Saeima, Āboltiņa was the Speaker of the 10th Saeima, a member of the Legal Affairs Committee and the European Affairs Committee, as well as the Chairperson of the Judicial Policy Subcommittee and a member of the Demographic Policy Subcommittee.
Āboltiņa was also a member of the 9th and 8th Saeima. In 2004, she was a legal advisor at the Ministry of Foreign Affairs, and in December 2004 she assumed the position of Minister for Justice in the Cabinet of Ministers, headed by Aigars Kalvītis.

Before being elected to the 8th Saeima, Āboltiņa was the Director of the Consular Department of the Ministry of Foreign Affairs.

Solvita Āboltiņa has a degree in law obtained from the Faculty of Law of the University of Latvia.