According to the amendments to the Law on the Bank of Latvia adopted in the final reading on Thursday, 21 November, the term of office of the Governor of the Bank of Latvia henceforth will be reduced from six to five years.

The five-year term also applies to the Deputy Governor and Members of the Council, and the same person will be eligible for a maximum of two consecutive terms in these positions. This approach adheres to generally accepted practice and regulations that outline appointing heads of institutions for a term of five years, previously had said Mārtiņš Bondars, Chair of the Budget and Finance (Taxation) Committee responsible for the advancement of the amendments in the Saeima.

Currently, the term of office of the Governor, Deputy Governor, or a Member of the Council of the Bank of Latvia is six years, and the positions may be held for an unlimited number of terms.

According to the amendments, the incumbent Governor, his Deputies and Council members will be able to perform their duties until the end of their current six-year term unless dismissed by the Saeima earlier.  

The adopted amendments also reduce the number of Board members from six to four to optimise the Bank’s administrative management. The new provisions will come into force on 1 March 2020.

The Cabinet of Ministers is tasked with drafting and submitting to the Saeima a plan for transferring the functions of the Financial and Capital Market Commission to the Bank of Latvia. Previously, MPs voted to request the Government to submit to the Saeima an impact assessment of the potential merger of the Financial and Capital Market Commission and the Bank of Latvia. Bondars noted that the planned merger process would have to respect the independence of the resolution authority supervising the monetary, financial and capital market participants.  

Saeima Press Service