Latvian parliament fails to elect new central bank president; country temporarily forfeits voting rights in ECB council

MOSCOW. Dec 19 (Interfax) - Latvia's parliament, Saeima, has approved Maris Kalis as acting president of the Bank of Latvia (Bol), who is currently the bank's deputy governor, at a meeting on Thursday, the Bol's website indicates.

Kalis will serve as acting president of the Bol's until a new one is elected.

"The Saeima is expected to make a decision on the president of the Bank of Latvia after the beginning of 2025. Until that happens, Latvia does not have voting rights in the Council of the European Central Bank (ECB). The ECB will consider whether to allow Maris Kalis to participate in ECB Council meetings as an observer," the Bol said.

The term of office of the current president of the Bank of Latvia, Martins Kazaks, expires on Saturday, December 21.

There were plans to elect a new head of the central bank at the meeting on December 19 In this regard, though this was not possible. The only candidate for the post was Pavel Kuzmin, nominated by the opposition For Stability party, though he did not receive the required number of votes. The New Unity party and the Union of Greens and Farmers, which are forming the government of the country, agreed the previous day to remove their previously supported candidates from the vote - Kazaks and the chairman of the board of the financial institution Altum Reinis Berzins - in order to approve a single candidate by the beginning of next year, who will be supported by the entire coalition.

The press service of the country's parliament, in turn, reported that the Saeima Presidium and the Council of Factions decided on Thursday that candidates for the post of president of the Bank of Latvia must be nominated by January 31.

The Law "On the Bank of Latvia" stipulates that its president is elected by the Saeima upon the proposal of at least ten deputies. The term of office is five years, and the same person may hold this position for no more than two consecutive terms.

According to the parliament's report, the same law stipulates that if the term in office of the president of the Bank of Latvia expires, then an appointed deputy fulfills the duties. However, Latvia will temporarily forfeit its voting rights in the ECB Council, but will remain its member, until a new president of the Bank of Latvia is elected.