No. 34/2026

On August 21 the Saeima backed, in its second reading, amendments to the Civil Procedure Law that streamline judgment enforcement. Where a company's reorganisation is already registered in the Enterprise Register, bailiffs will no longer need extra steps to continue a case, and notices to parties whose address is unknown may be published in the official gazette "Latvijas Vēstnesis". The amendments also bring the Bank of Latvia into handling consumer collective complaints alongside the PTAC consumer rights body; the changes are due to take effect on 1 January 2027.

The LTRK Arbitration Court has opened applications for a member of its arbitration council, with the call also published in the Jurista Vārds journal. Interested candidates can contact LTRK to learn the requirements and application procedure. The announcement points to a renewal of the governing body of the LTRK arbitration court.

On 20 August the Insolvency Control Service held an online seminar for insolvency administrators on filing employee claims in the EMUS system and applying labour law during insolvency proceedings. 45 administrators attended; the session was led by the Service and the State Labour Inspectorate. Topics included termination of employment contracts and guarantee fund payouts.

Latvia's Finance Ministry and central bank are advancing bills implementing an EU directive on recovery and resolution for insurers and reinsurers in distress: firms must first prepare recovery plans, and if these fail, a resolution authority could use asset sales, a temporary bridge entity, or liability restructuring. The plans also include an insurance protection fund and lighter requirements for small, simple insurers. The bills are currently before the government.

airBaltic bondholders agreed to capitalize interest payments due 14 August and 14 November — adding them to the bond principal instead of cash payment — allowing the state airline to avoid declaring insolvency. Investors also temporarily waived minimum liquidity requirements until 14 November. Quarterly interest obligations total EUR 13.775 million, tied to a 2024 bond issue of EUR 380 million at 14.5% annual interest.

The piece explains that core terms of risk insurance (property, motor) and life insurance contracts can only be changed by mutual agreement of both parties. Contracts can be ended by written agreement taking effect 15 days after notice, or when the insurable interest lapses or ownership changes. On termination, insurers refund the unused premium minus a 15% administrative deduction.

The article explains that before issuing a policy, insurers must identify the client's needs and prepare a proposal detailing covered risks, exclusions, premium and deductible, plus provide the contract terms and a comparable product information document. From 1 July 2026 policies must clearly mark both covered and excluded risks, while a plain-language requirement for terms phases in during 2027-2028.

The article explains that expenses incurred before a company's registration in the Commercial Register are initially covered by the founders from personal funds, since under the Commercial Law a company only becomes a legal entity upon registration. Invoices issued before registration are not automatically treated as the company's invoices, but after registration the company may reimburse justified formation costs if this is provided for in the founding documents. The author stresses that receipts alone are insufficient proof — it must be established who actually bears the costs and whether they directly relate to the company's formation.

On 13 August the Competition Council received a merger notification for SIA "Petrol Property" and AS "VIADA Baltija" acquiring control over the former "Circle K" franchise fuel station "Priežkalni 2" in Jumprava parish. KP will assess the deal's effect on the local fuel retail market; comments are invited until 31 August.

Latvia's Competition Council has received a merger notification from "Petrol Property" and "VIADA Baltija" concerning the acquisition of decisive influence and usage rights over a fuel station in Jumprava parish. The Council must now assess the deal's compliance with competition rules.

In an emergency sitting on August 20, the Saeima passed in its final reading a law letting the state extend repayment deadlines and convert its loan and bond claims against airBaltic into equity. It allows the state to buy up to €30 million of newly issued company bonds and convert up to €50 million of existing bond claims into capital, with specific decisions left to the Cabinet of Ministers. The government must report on implementation to the Saeima's Budget and Finance Committee at least once a quarter.

Falber Investments, parent company of Estonian dairy producer Agrone, has agreed to acquire the Rigas piena kombinats group, which includes Valmieras piens. Completion is subject to approval by the competition authorities in Estonia and Latvia, and until then both companies will keep operating independently. Financial terms were not disclosed.

On 14 August the Competition Council received a merger notification from SIA "VITA mārkets" concerning lease rights to the former "Sky" store at Siguldas šoseja 8, Berģi, where an "ELVI" store is planned. A decision on approval is due within a month, and interested parties were invited to comment by 26 August.

Latvia's Competition Council received a notification from "VITA mārkets" of its intent to acquire usage rights over the former "Sky" store premises in Berģi, on Sigulda highway, to open a new "ELVI" outlet there.

The Mere retail chain was shut down after Russian businessman Sergey Schneider, owner of the company managing Mere through Latprodukti LLC, was placed under the EU's 21st sanctions package. On 6 August Latvia's Financial Intelligence Unit issued a general administrative act allowing suppliers to reclaim goods held by sanctioned companies without a separate permit, coordinating with the Food and Veterinary Service and other agencies. Sanctions do not cancel the sanctioned companies' payment obligations to suppliers, but settlements must follow sanctions procedures.

On 7 August the Competition Council received a merger notification from SIA "AMIC Latvia" concerning the transfer of usage rights over its fuel stations and the Olaine oil depot currently leased to AS "VIADA Baltija". The notifying party states the parties' activities do not overlap and no affected markets arise. Comments are invited until 26 August.

Latvia's Competition Council received a notification of "AMIC Latvia's" intent to acquire usage rights over fuel-station assets leased by "VIADA Baltija." The Council must assess whether the deal affects competition in the fuel retail market.

The Competition Council has approved SIA "FIRMA MADARA 89" acquiring lease rights to the former "Sky" store premises at Kārļa Ulmaņa gatve 122, Riga, where a "top!" store will open. KP concluded the deal will not significantly affect competition in the everyday consumer goods retail market.

Latvia's Competition Council cleared a deal by "FIRMA MADARA 89" to acquire usage rights over certain commercial assets, concluding it would not materially affect competition in the relevant market.

Ahead of the expected "airBaltic" financial stabilisation law, the Prime Minister said the Saeima must make a fundamental decision on whether the state will remain an owner of the airline, given its financial troubles and the further investment required.

A "Jurista Vards" conversation with sworn advocate Katrine Plavina-Mika and procurement specialist Arija Vecmane discusses the decade's biggest reform of Latvia's public procurement rules, aimed at making the process faster and cheaper.

Amendments to the Unfair Trading Practices Prohibition Law took effect on 19 August, requiring buyers to give suppliers at least 30 days' notice before delisting a product, introducing clearer rules for delivery forecasts, and limiting unilateral penalties where shortfalls stay within 10% of the forecast. Retailers must now pay for regular fresh vegetable and berry deliveries within 20 days. KP is urging market participants to review their cooperation agreements.

Njord Law outlines what foreign construction companies must arrange before starting works in Latvia, including mandatory registration in the Construction Merchant Register and recognition of foreign specialists' professional qualifications. The piece also covers classification requirements for public projects, worker-posting rules, and tax considerations relevant to cross-border contractors.

A construction-company executive warns that abnormally low bids accepted in public tenders threaten viable competitors' survival, since commissions rarely check whether a price covers real costs. He calls for cost justifications and complexity-scaled evaluation criteria rather than lowest-price-only awards.

A joint LDDK and SIFFA study finds that employee health problems create an additional burden for employers — 90% of surveyed companies report an impact on colleagues, and over half face prolonged or frequent staff absences. LDDK proposes reducing the number of days employers must pay for an employee's sick leave (the A-list period) to encourage preventive health measures, along with better tax incentives for employer investment in employee health. The study feeds into a discussion on possible amendments to labour and healthcare regulation.

The article explains that employee video surveillance is lawful for an employer only when it serves a specific purpose — such as meeting legal obligations, gathering evidence for disputes, or monitoring work quality — has a proper legal basis, and employees are honestly informed about the monitoring and their rights. Surveillance is unlawful if cameras target private areas or shift from monitoring situations to tracking an individual employee. The framework rests on Article 96 of the Constitution, the GDPR, and the Law on Personal Data Processing.

The Latvian Aviation Professionals' Union (LAP) is demanding a social guarantees agreement from airBaltic covering workers potentially affected by fleet-optimization layoffs. The union also wants access to the airline's business plan after consultations broke down on 14 August, and rejected an overly broad confidentiality agreement proposed by the company. Under the Labour Law, employers planning collective dismissals must consult worker representatives on social guarantees for those being let go.

An e-consultation on LV portāls addresses a case where a municipality, when subdividing a plot for a new house, refused to allow use of an existing easement road and instead required a new 5.5-metre easement across a neighbour's land, costing the owners around €25,000. The response explains that newly created land plots must have documented access to a road or street under applicable regulations, and unresolved easement disputes can be settled through the courts.

In an e-consultation on LV portāls, sworn advocate Santa Blumberga-Švēde answers whether two residential buildings on shared land can have separate utility contracts (water supply, waste removal), or whether the property must first be divided. The answer depends on the legal status of the buildings and land (co-ownership, separate apartment units, lease rights) and whether splitting services is practically feasible; she recommends consulting utility providers and possibly agreeing on a co-ownership usage arrangement.

Amendments effective from 19 August transfer maintenance of the real estate intermediaries register from the Economics Ministry to the industry association LANĪDA. Registration becomes fully electronic and faster, while the EUR 40 registration/supervision fee and professional requirements stay unchanged. LANĪDA will not have access to tax or criminal record data.

At an extraordinary session, the Saeima urgently considered amendments to the National Security Law allowing temporary requisition of privately owned real estate in case of a threat caused by military operations. The initial seizure period would be 14 days, extendable by the Cabinet of Ministers, with compensation guaranteed to owners for any damage. The measure covers only emergency wartime powers, not peacetime nationalization.

In Riga's Imante district, a tenant repeatedly flooded neighboring apartments, and after the lease ended the landlord, Arturs, demanded the tenant vacate within two weeks — which the tenant refuses, denying fault. Attorney Janis Berovskis explains liability could fall on either owner or tenant depending on the accident's cause: the owner must maintain the flat so it causes no harm to neighbors, while the tenant answers for negligence. Where parties cannot settle, the dispute goes to court, and insurers are already pursuing the landlord for the neighbor's damages.

The explainer notes co-ownership can end by co-owners voluntarily agreeing before a notary, who drafts a division agreement filed with the Land Register, or through the courts if agreement fails. Courts may assign physical shares, award the property to one owner with compensation to others, order a sale, or use a lottery. The basis is Civil Law Articles 1074 and 1075.

The Latvian Traders' Association (LAT) is urging the Finance Ministry to treat losses linked to international sanctions as force majeure, allowing suppliers to write them off as business expenses without triggering corporate income tax. If suppliers must write off roughly EUR 1.8 million in unpaid goods as bad debt, current rules could impose an additional tax of about 25% on the uncovered amount. LAT president Henriks Danusevics says that without changes, suppliers lose not only the debt itself but also pay tax on it.

The Saeima backed, in second reading, a procedure for handling funds left in bank accounts after a bank ends a client relationship. Clients will have five years to claim their money before the right lapses and the funds pass to the state within 30 days, except where frozen or subject to enforcement. As of early 2025 such accounts held roughly EUR 26.8 million.

On 20 August the Saeima adopted amendments to the Consumer Rights Protection Law introducing a new "capital release credit" product, allowing loans secured against real estate that is not the borrower's declared residence. The loan may not exceed 70% of the property's market value, the repayment term can run up to 30 years, and the borrower's liability is limited to the mortgaged asset. The new rules take effect in mid-September and aim to boost Latvia's low lending-to-GDP ratio (27.5%, versus the eurozone average of 76.9%).

On August 20 the Saeima adopted amendments to the consumer rights protection and credit information laws letting residents register with credit bureaus a refusal to borrow, which lenders will then have to respect when assessing applications. The law also curbs unsolicited credit offers, sets requirements for remote lending and disclosure of AI-personalised offers, and introduces a new home-equity loan product capped at 70% of property value. It further extends registration requirements to credit intermediaries and large deferred-payment providers.

On 6 August the Competition Council approved SIA Hipocredit Group acquiring 100% of the shares and decisive influence over non-bank lender AS Hipocredit. Both companies operate in the mortgage lending market, issuing loans secured by real estate, forest land and agricultural land. KP concluded the deal will not materially change market structure or restrict competition.

The article explains "STOP Credit," a Credit Information Bureau service anyone can activate to block new loans being taken out in their name, guarding against both impulsive borrowing and identity theft. Lifting the block requires a 72-hour waiting period meant to blunt pressure from scammers. Latvia's Civil Law, Article 1587, is cited as the basis for a borrower's duty to repay even when victimized by fraud.

The Consumer Rights Protection Centre (PTAC) warns that more Latvians are submitting AI-drafted complaints that often contain serious errors. PTAC says AI can produce convincing text but lacks legal expertise — citing outdated legislation, wrong deadlines, and legally defective claims against businesses or in court. The agency recommends treating AI only as a supplementary tool and avoiding entering sensitive data without understanding how it is processed.

As of August 19, amendments to the Consumer Rights Protection Law lifted an eight-year ban on consumer credit advertising, replacing it with a responsible-advertising regime requiring cost warnings and barring implications that credit is easily available. PTAC can fine violators up to EUR 300,000.

Amendments to the Consumer Rights Protection Law lift the blanket ban on credit advertising, replacing it with specific requirements: ads must be honest and clear and carry a warning covering at least 10% of the ad space. Credit agreements can no longer be signed between 21:00 and 08:00 (previously 23:00-07:00), and affordability checks are tightened, especially for borrowers under 20. The changes take effect on 27 September.

PTAC warns consumers that a credit intermediary does not itself issue loans and often charges a commission, while the loan agreement is signed with the actual lender. The agency advises checking an intermediary's partner lenders and fees beforehand, and verifying that mortgage credit intermediaries are listed in PTAC's register. Particular caution is urged when assessing loan refinancing offers.

Fintech firm Capitalia launched a monthly financial-health index for Latvian companies, scoring over 3,000 firms in July. The average score was 87/100, but over a quarter carried tax arrears. The tool could help creditors gauge counterparty insolvency risk.

The government approved amendments expanding the agricultural, fisheries and rural development guarantee scheme, letting banks restructure up to 50% of a loan's principal with a state guarantee of up to EUR 750,000 per beneficiary. The guarantee premium will run at roughly 0.5% annually, with about EUR 3 million redirected from the Rural Development Programme to fund it.

It emerged the CSDD cyberattack exploited an application the agency managed itself, outside telecom operator Tet's security contract. The Economy Minister said Tet covered only network infrastructure, and a transition period had let systems run without mandatory safeguards. Both sides acknowledged the need for closer cybersecurity coordination.

Latvia's Ministry of Defence has drafted amendments to the National Cyber Security Law creating a legal framework for security researchers to access information systems to identify vulnerabilities, without unduly burdening systems or compromising security. The rules would cover essential and important service providers and critical infrastructure operators. The proposal follows a 2026 court case in which inventor Raimonds Skuruls was fined EUR 4,290 for reporting a vulnerability to CSDD; public consultation runs through the end of August.

PTAC reports a growing number of complaints drafted with AI tools that contain legally unfounded or mistaken arguments. The agency stresses that AI is not a legal adviser and bears no responsibility for the information it provides, urging consumers to verify AI suggestions against official sources, especially regarding deadlines and financial obligations.

DVI explains how it handles a personal-data-breach notification: it assesses the circumstances of the violation and the security measures the organisation had in place, not just the fact that an incident occurred. The authority stresses that DVI itself does not award compensation to affected individuals — claims for damages must be pursued in civil court with evidence of the harm suffered.

A cyberattack on CSDD exposed 18 years of payment data for 1.2 million residents and ~200,000 businesses. The PM sharply criticized CSDD for failing mandatory cybersecurity requirements, including missing two-factor authentication; the Data State Inspectorate must assess consequences by August 31. Possible foreign involvement is being investigated.

The President said that after the massive CSDD data breach affecting 1.2 million residents and ~200,000 businesses, the agency's leadership should not remain in office given the loss of public trust. He called the attack a serious national-security threat; State Police opened a criminal investigation.

Latvia's statistics office published its first monthly list of Latvian-registered companies trading with Russia or Belarus, under June amendments to the law supporting Ukrainian civilians that override tax-secrecy rules. The tax authority must now feed this data to the statistics office for disclosure. Updates are planned monthly.

On 20 August, Prosecutor General Armīns Meisters petitioned the Constitutional Court over two Cabinet of Ministers protocol decisions that had instructed the Agriculture Ministry to adjust prices in long-term contracts between state forestry company "Latvijas valsts meži" and private timber buyers for softwood logs from 2024 onward. The Prosecutor General argues the government, without statutory authorisation, allowed state property to be sold below the prices set in existing civil contracts, in breach of the Constitution.

The Senate's Civil Cases Department declined to open cassation proceedings in a case where an actor sought retraction of false statements broadcast on TV. A Riga Regional Court ruling requiring the broadcaster to retract the information stands, while the claim for moral damages was rejected. Case No. SKC-526/2026.

On August 18 the Court Administration published performance data for the state-guaranteed legal aid system for the first half of 2026. It received 668 applications for legal aid (up 8.3% year-on-year), funded with over €1.03 million from the state budget. The report also covers hotline calls, in-person visits, and the network of providers — 97 agreements involving 73 sworn advocates and other specialists across 30 municipalities.

A commentary on the CSDD leak warns the stolen data could fuel targeted fraud — fake SMS, calls and ads impersonating authorities leading to phishing pages. The author advises never approving unsolicited Smart-ID requests and verifying communications only via official channels; fraudulent emails already circulating in CSDD's name are cited.