Investors get jitters as Latvia pledges not to devalue the lat
Sunday 07 June 2009
Investors are nervously watching Latvia as the Baltic state pledged this week that it would not devalue the lat, its national currency, amid growing financial jitters.
Latvia has been affected more severely than any other EU country by the financial crisis, and in December was offered a €7.5bn (£6.6bn) rescue package led by the IMF and the EU. Since then, the economic outlook in the country of 2.2 million has deteriorated. The latest €1bn instalment of the package has been held up as the Latvian government tries to cut public-sector wages in order to help the budget deficit. EU and IMF officials were in Riga, the capital, this week to discuss the cuts.
"A breakdown in the relationship with the IMF and EU would leave Latvia facing a substantial budget and external financing gap," Fitch Ratings said in a report this week. "Such a situation would be likely to precipitate a devaluation of the lat."
The situation prompted violent anti-government protests in RigaEarlier this year. Forty people were injured and the government resigned, but the new coalition is also under pressure. The economy is set to shrink up to 20 per cent this year.
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
- 5 Nigerian witch-finder Helen Ukpabio threatens legal action against human rights organisations
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Kate Upton nude photos leak: Model's spokespeople 'looking into' authenticity of indecent images
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£55000 - £65000 per annum: Harrington Starr: A Global Financial Service Organi...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£40000 - £50000 per annum: Harrington Starr: A Global Financial Service Organi...
£50000 - £70000 per annum: Harrington Starr: One of the global leaders in prov...