After councils at state-owned companies were liquidated in July 2009, these companies’ boards have been becoming increasingly politicized, leaving less room for professional managers, says Krastins, writes LETA.

“This may be remedied by what China and Scandinavian countries have done – list these companies’ shares on the stock exchange, 10 to 25% of their share capital. In that case, the companies will have to present quarterly reports that will be available to the general public. Private investors will want to be represented in these companies’ management and make sure that the companies being are run the right way,” emphasizes Krastins.

Foto: LETA

Politicians do not want to do this though, as this may mean taking unpopular decisions. Nevertheless, power utilityLatvenergo and forest management company Latvijas Valsts mezi are very well prepared to have their shares listed on the stock exchange, perhaps also the Latvijas Dzelzcels railroad company, says Krastins.

Krastins believes that the list of state companies that may not be privatized could be altered by amending several laws. “The major Scandinavian companies are also controlled by the state, nevertheless, their shares are listed on the stock exchange.”

baltic-course.com