Financial sector head Cērps: outgoing Saeima has piled excessive burdens on the industry
The head of Latvia's Financial Sector Association, Uldis Cērps, says the outgoing Saeima has added extra duties and a solidarity levy on the financial sector that need to be eased going forward. He also addresses gaps in critical infrastructure exposed by the recent storm.
Uldis Cērps, chairman of the board of Latvia's Financial Sector Association (FNA), told the LETA news agency that the country's financial sector needs reduced tax and regulatory burdens in coming years. He said the outgoing Saeima imposed several additional obligations on the sector and introduced a solidarity levy, leaving what he described as sand poured into the industry's engine that now needs clearing out.
Crisis readiness after the storm
Discussing the aftermath of the late-August storm, Cērps explained that Latvia's four largest banks are required to maintain 94 so-called critical ATMs, a number set to rise to 106 soon. During crises, Latvian-issued payment cards can be used for up to 200 euros to pay for essentials like food, medicine and fuel even without phone or internet connectivity, provided electricity is available. He noted that regulation remains insufficient regarding property owners' obligations to provide alternative power supply at sites hosting critical ATMs, and called for stronger legal frameworks covering providers of critical services. He also reminded households of the state's recommendation to keep at least a week's worth of cash on hand.
The solidarity levy and its effects
Cērps said the solidarity levy imposed on banks for two years was introduced without sufficiently comprehensive analysis, drawing objections from the European Central Bank and the International Monetary Fund. Banks paid 74 million euros under this levy in 2025 and 40 million euros so far this year, money he says negatively affects lending and Latvia's competitiveness compared with Lithuania and Estonia, which have no equivalent tax. The FNA hopes the levy will at least be scrapped for new loans starting next year, with full abolition expected by 2028 as currently outlined in policy planning documents.
Party election programs
The FNA reviewed the election programs of parties running for Saeima, measuring them against 15 sector-drafted proposals covering taxation, reducing bureaucracy, competition and combating financial fraud. Cērps acknowledged that some proposals were reflected in party platforms, but said the association wants to see the financial sector treated as a strategic driver of the economy, with barriers to its operation removed, including extensive requirements for opening branches outside Riga.
