On Friday OECD Secretary-General Angel Gurría said he welcomed the passage into law of Latvia's Public Persons Enterprises and Capital Shares Governance Law.
"The law's passage by the Saiema is a welcome development," said Gurria.
"We look forward to seeing how this new law will help ensure the efficiency and transparency of Latvia's state-owned enterprises."
Key elements in the new law, such as the reintroduction of boards of directors, the establishment of an entity coordinating state ownership and the start of annual aggregate reporting by the government are consistent with OECD recommendations, the release said.
"The passage of the law shows a positive commitment by Latvia to the OECD accession process", said Secretary-General Gurria.
Latvia began its path to OECD membership in October 2013. During a recent visit to Riga, Gurria said he expected Latvia to achieve full membership status in 2016