State “airBaltic” bonds worth no more than 100 million euros could be purchased / Article

Asheraden asked to wait for Tuesday’s government meeting, when the matter will be decided.

Prime Minister Evika Siliņa (“New Unity”) stated on Monday after the coalition meeting that specific amounts and solutions will still be considered at Tuesday’s government meeting. Representatives of government parties heard the situation of “airBaltic” at the meeting on Monday – the company is working successfully, achieving good profit indicators, noted the Prime Minister.

“airBaltic” should look for development opportunities by attracting private capital, said Siliņa, noting, among other things, that in the future it is planned to list the shares of “airBaltic” on the stock exchange, which will give Latvian residents the opportunity to buy the company’s shares.

When asked about the position of the Union of Greens and Farmers (ZZS) on the bond purchase issue, Speaker of the Saeima Daiga Mieriņa (ZZS) stated that the government’s decision is still to be expected, but ZZS is inclined to support it.

Antonina Nenasheva, member of the chairman of the “Progressive” Saeima faction, noted the good financial indicators of “airBaltic” presented today in the coalition. The politician emphasized that the state’s involvement in the purchase of bonds would take place under the same conditions as those for private market participants.

CONTEXT:

The Saeima recently adopted the government-directed amendments to the “Law on Budget and Financial Management”, with which the Minister of Finance is given the authority to use state budget funds with the support of the Saeima and the government for the purchase of fixed income securities of capital companies in which the state has a decisive influence.

Transport Minister Kaspars Briškens (“Progressives”) has noted that the adopted changes will enable the state to participate in the bond issue of the Latvian national airline “airBaltic” alongside and under the same conditions as international private investors.

On the other hand, Finance Minister Arvils Asheradens (“Jaunā Vienotība”) has emphasized that such purchase of state capital company bonds, which the state could make on the same terms as private investors, does not put pressure on the state budget deficit. At the same time, Asheraden pointed out that the purchase of such bonds can only be financed by borrowing, so this would increase the amount of borrowed money.

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