Analytics, Economics, Financial Services, Latvia

The Bank of Latvia President Ilmars Rimsevics said in an interview with the Latvian Television show "Rita panorama" that streets are jammed with automobiles, stores are filled, and there is a feeling that everything is fine. However, it is obvious that the economy is slowing down due to the situation in Russia and reducing economic activity in the eurozone and on the domestic market.

The Bank of Latvia does not predict any crises, but urges the government to be careful with expenditures, especially in the summer, as there will be various ways to spend budget funds, as well as in the fall when the next year's budget will be discussed.

Rimsevics said that the government is currently "doing nothing" to make it clear what could be expected in the future.

The Bank of Latvia president said that there ought to be a body of eight or nine measures in order to "warm up" the economy. One of the main measures should be the development of lending services. Rimsevics said that during the so-called "years of abundance", banks issued monthly credits in the amount of EUR 400 million. The same amount is now being issued on an annual basis.