On Thursday, 8 March, the Saeima supported a draft decision on urging Mr Ilmārs Rimšēvičs to resign from the post of the Governor of the Bank of Latvia.

The Saeima’s decision was brought to the agenda and deliberated in light of the criminal proceedings initiated by the Corruption Prevention and Combating Bureau of Latvia (KNAB) regarding probable illegal conduct by a high-level official of the Bank of Latvia, where Mr Rimšēvičs is named a suspect.

The decision outlines the role and the prominent status of the Bank of Latvia in ensuring the stability of the national financial system, the effect of the Governor’s reputation on Latvia’s image in the international community, since the Governor of the Bank of Latvia is also among the 19 governors of the Eurozone central banks with decision-making rights in the Governing Council of the European Central Bank (ECB). Furthermore, it is pointed out in the decision that Mr Rimšēvičs remaining in the position of the Governor of the Bank of Latvia may undermine future decisions made by the Bank of Latvia, cast a shadow of doubt on the institutional and legal capacity of the Bank of Latvia, and harm Latvia’s national interests.

In making the decision, the Saeima also considered the Code of Conduct for the Members of the Governing Council of the ECB, according to which the members of the Governing Council shall observe the highest standard of ethical conduct. They are expected to act honestly, independently, impartially, with discretion and without regard to self-interest and to avoid any situation liable to give rise to a personal conflict of interests. They are expected to be mindful of the importance of their duties and responsibilities, to take into account the public character of their function and to conduct themselves in a way that maintains and promotes the public's trust in the ECB.

According to the Law on the Bank of Latvia, the Saeima has limited rights to decide on the dismissal of the Governor of the Bank of Latvia; besides, the Law does not provide for a procedure for suspending the Governor’s mandate. However, the Law allows the Saeima to dismiss the Governor of the Bank of Latvia before the expiry of the term of office upon receiving the Governor’s resignation.

Saeima Press Service