For Latvian banks, servicing Belarusian companies that have decided to transfer operations to Latvia could be a test of the system’s efficient operation, Sanita Bajāre, Chairman of the Board of the Financial Industry Association, said in an interview with Latvijas Radio on Tuesday, September 22.
She pointed out that working with high-risk clients, which are also considered to be Belarusian companies, requires very close cooperation at various levels. «We [bankas] we can handle such risks if the whole system works as a good clock mechanism, where each stage does its job, »said the head of the association.
She noted that servicing Belarusian companies that have decided to relocate to Latvia could be a test of the system’s effective operation.
“It could be, to some extent, a pilot project of the system, in which we can test and create this most effective cooperation,” said Bajāre.
She also mentioned that the introduction of strict requirements in the banking sector for dealing with high-risk clients was rapid and that the implementation process may have lacked some time to develop a clear understanding of how this new framework applies.
“We are working very hard to find a balance between being able to take risks and managing them appropriately, because in essence we must not only take risks that we cannot manage. Regardless of whether the risk is low or high, if we understand this risk, we can work with such clients, “said Bajāre.
At the same time, she emphasized that banks need clear information from the state on how to establish cooperation with high-risk countries, but that the companies concerned must be able to ensure business transparency.
It has already been reported that the decision to transfer operations to Latvia has been made by 12 Belarusian companies. These companies represent the information and communication technology (ICT) sector and other areas of technology, such as green energy. Some companies qualify for the status of new companies in accordance with the meaning of the New Business Support Act. These companies plan to transfer about 470 employees to Latvia, mainly company management representatives and key specialists.
A special team has been established in Latvia, in which representatives of the Ministry of Economics and the Latvian Investment and Development Agency (LIAA), in cooperation with other involved institutions, review applications from Belarusian entrepreneurs under an accelerated procedure and offer possible solutions. Current issues include the issuance of temporary residence permits to highly qualified specialists and their family members, start-up visas, opening bank accounts and others.
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