Latvia's Ministry of Finance announced that the Financial Sector Development Council, chaired by Prime Minister Evika Siliņa, will meet on 9 December to review an assessment on designating a single institution for creditors’ supervision and control, consider possible limits on commission fees for legal persons in cases of early loan repayment or refinancing, and discuss measures to reduce fraudulent-transaction risks in the financial sector. The assessment was prepared under a Cabinet of Ministers action plan aimed at attracting investment and improving access to finance, and analyses alternative scenarios alongside the benefits, risks and potential financial impact of creating a unified supervisor. Creditor supervision is currently carried out by the Bank of Latvia, the Consumer Rights Protection Centre and the State Revenue Service, with the release noting that the practical boundary between mandates is not always clear in day-to-day supervision and can create difficulties for market participants. On refinancing-related commissions for legal persons, the Council will hear a Bank of Latvia presentation following an earlier decision to introduce a monitoring period to observe market practice, and it will also review information from the Latvian Financial Industry Association on fraudulent transactions before considering possible risk-mitigation solutions.

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