Riga  - Latvia's transport minister, Ainars Slesers, called for legislation Monday to punish the Scandinavian banks dominating the Baltic banking sector for "irresponsible activity in handing out money" over recent years.

Speaking on the LNT television channel, the controversial politician blamed Scandinavian banks operating in the region, which include Swedbank, SEB and Danske Bank, for contributing to an economic crisis in Latvia that forced his government to seek a 10-billion-dollar international bailout in December.

Slesers suggested laws could be introduced restricting the banks' rights to pursue debtors and seize assets from defaulters.

He said he was in favour of a three-year moratorium during which time banks would be unable to pursue defaulters. Export-oriented companies would receive additional protection. The minister, an outspoken politician who seems to relish controversy, accused the banks of profiteering.

"It looks like in these tough times, the banks have decided to make double profits by buying companies cheaply and later selling them on, for example to Scandinavian entrepreneurs," he claimed.

Slesers had little sympathy for the banks, which have invested heavily in the region, saying that if his proposals became law they would be binding.

"Of course, the banks will be dissatisfied, but they will have to comply with the decision. We are an independent country," he said, adding that legislation could be in place within a month.

The minister's populist proposals come a day before thousands of disgruntled Latvians are due to attend a mass demonstration in the capital city Riga to call for the dissolution of parliament and fresh elections. dpa