Implementation of national financial literacy strategy in Latvia

27.02.2014
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Press Release
27.02.2014

Implementation of national financial literacy strategy in Latvia

On 24.02.2014, strategic partners signed the memorandum on the implementation of the National Strategy for Financial Literacy in Latvia 2014–2020 (hereinafter – the Strategy) aimed at promoting a progressive rise in the public financial literacy. Agreement on further cooperation was reached by – the Financial and Capital Market Commission (FCMC), Ministry of Education and Science, National Centre for Education, BA School of Business and Finance, Consumer Rights Protection Centre, Association of Commercial Banks of Latvia and Latvian Insurers Association.

Kristaps Zakulis, FCMC Chairman: “Financial literacy is an essential part of modern life, and without it effective integration into the developed society is next to impossible. The skills such as personal financial planning, creating savings and their diversifying, increasing private capital and openness to new business initiatives that strengthen financial sustainability and potential for growing well-being in the future will be crucial factors for the quality of life. Everyone in certain circumstances may be financially and economically active if they are equipped with the skills of financial literacy, and in the course of life it sometimes turns out to be more important than the income level and professional qualifications, as in the future a decisive precondition for achievement of objectives will be skilful management of finances instead of the amount of finances available to a person.”

Partners have come to an  agreement on three strategic objectives in the area of financial literacy:
– TRADITION OF PLANNING FINANCES AND CREATING SAVINGS; to enhance Latvian household stability, welfare and financial sustainability throughout the life cycles,
– FINANCIAL SERVICE ENVIRONMENTAL INTEGRITY; to ensure provision of fair financial services adequate to the needs of consumers and encourage consumers to make weighted and informed choices based on risk-awareness and responsibility,
– DEVELOPMENT AND SUSTAINABILITY OF PUBLIC FINANCES; ability to evaluate economic processes in Latvia, including various economic development scenarios, to improve public financial independency and growth opportunities.

The necessary acting blocks (overall seven) have been set up for the implementation of strategic objectives, specifying tasks and activities of responsible institutions. The implementation of objectives will be carried out by strategic partners in close cooperation with other associates that have confirmed their willingness to participate in the common activities or to provide their support for financial literacy promotion. The partnership has been established with the Ministry of Finance and State Revenue Service, Ministry of Economics, Ministry of Welfare, Bank of Latvia, professional associations of market operators and Latvian Association of Local and Regional Governments, as well as the higher education institutions – University of Latvia, Riga Technical University and  Latvia University of Agriculture.

In the course of implementation of the strategy FCMC, as a  coordinator of financial literacy issues, is planning to develop a new measurement system and methodology for compiling results – financial literacy index of Latvian residents that will comprise the results of annual public survey of residents conducted by FCMC or the positive score characterizing the overall resident level of financial literacy, as well as statistic ratios reflecting Latvian household financial stability, development and sustainability.

Continuing the ongoing activities, the strategic partners will hold FINANCIAL EDUCATION WEEK for the second year in a row (March 10 – 14). This year, the possibilities to develop professional competences of economic and social science teachers will be spotlighted, by offering workshops for exchange of experience on how to make interesting interactive discussions about serious issues such as personal finances and financial objectives, as well as introducing new methodology for development of financial and social skills.

Further information:
Ieva Upleja
Communications Division
Financial and Capital Market Commission
Phone:+371 67774807; email: ieva.upleja@fktk.lv

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