The privatization of energy companies has seen the highest number of sticking points, however.

Latvia's prime minister said, in relation to energy firms, the move is partly motivated by a perceived need to bar companies from outside the country from dominating that sector.

Comparing how much nations have raised on the stock market for the development of their firms, and for the economy as a whole, Latvia significantly lags behind its neighbors, AK reported.

However, floating on the stock exchange has been a joint promise of the current coalition parties, and after long-standing disputes, an agreement was finally reached on a couple of dozen firms.

Latvian Prime Minister Evika Silina (pictured) said: "We will list minority shares, meaning a smaller proportion of the company, on the stock exchange. Why are we doing this? The aim is to raise additional funds, so that not all necessary expenses are covered by the state budget, something which is a significant burden for the residents of Latvia."

"Previously, making state and municipal companies public was not possible. Now we try to achieve this to avoid our neighboring countries cornering our market. Otherwise, our companies would have fewer opportunities to compete in, for example, the wind and electricity energy sectors," she went on.

Latvian Finance Minister Arvils Ašeradens meanwhile said: "The main goal is to develop the country's capital market. Currently, it is at a very low level, with the shares of listed companies making up only 1.8 percent of GDP. Our view is that by 2027, that share could already be nine percent," said."

As has been reported, Latvia's national air carrier, airBaltic, is the nearest to being ready for floatation. The airline's shares are planned to be listed at the end of this year, or the beginning of next year.

Major telecommunications companies TET and LMT will also be privatized in due course, AK reported.

Transmission systems operator Augstsprieguma tikls (AST) will be floated on the stock exchange once Latvia's electricity system is fully integrated with the EU, and desynchronized from the Russian grid, under the current plans.

Utility company Latvenergo will meanwhile not be privatized, though plans are in place to raise additional funds for renewable energy development.

A joint wind park development venture between Latvenergo and the Latvian forestry management company LVM has not gained its desired momentum, and the recommendation now is that Latvenergo would set up a subsidiary focused on green energy, and then list its shares on the stock market. On this, Latvia would be drawing inspiration from its northern neighbor.

"The same has been done in Estonia – Enefit operates via its subsidiary Enefit Green. We are closely cooperating within the Baltic states," Finance Minister Ašeradens said.

Of the municipality-owned major companies, preparations for going public will begin with Riga's transport, water, forest, and housing management companies.

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