Latvia to receive central bank help

Article reports that the central banks of Sweden and Denmark have agreed December 2008 to lend Latvia up to €500m to ease its banks’ liquidity problems until an International Monetary Fund stabilisation plan can be put in place. The swap facility demonstrates the importance of Latvia to Sweden, whose banks dominate the Baltic country’s banking sector, as well as the seriousness and urgency of Latvia’s financial problems.

The Latvian government is seeking around €5bn from the IMF, the European Union and other international lenders to bolster its foreign currency reserves, fill a hole in the public finances and support struggling banks and companies.

ESO: Background information: Latvia to cut public spending http://www.europeansources.info/record/latvia-to-cut-public-spending/

Website: Bank of Latvia http://www.bank.lv/eng/main/all/

Latvijas Banka: Press Release, 16.12.08: Commentary on the possible loan from the central banks of Sweden and Denmark http://www.bank.lv/eng/main/all/sapinfo/commentary/sweden_denmark/index.php?99002

Latvijas Banka: Press Release, 16.12.08: The Riksbank and Nationalbank grant loans to Latvia's central bank http://www.bank.lv/eng/main/press/sapinfo/lbpdip/1612/

Riksbank: Press Release, 16.12.08: The Riksbank grants loan to Latvia's central bank http://www.riksbank.com/templates/Page.aspx?id=29978

EDBR: Press Release, 15.2.09: EBRD supports stabilisation efforts for Latvia http://www.ebrd.com/pages/country/latvia.shtml

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