Analytics, Financial Services, Funds, Latvia

Teodors Tverijons.

The International Monetary Fund, which warns that the Baltic countries are at risk of following Iceland into bankruptcy, has established a support fund for new countries. Tverijons added confidently that Latvia will not have to use money from the fund for improving the economic situation in the country.

Regardless of the crisis on global financial markets, the banks in Latvia will end 2008 with profit, except this profit will not be as large as it used to be in the past year.

Lavian banks’ investments are balanced and diversified, therefore they cannot sustain such losses as foreign banks did, Tverijonis reiterated. “No bank in Latvia is facing any trouble presently,” stressed Tverijons.

Tverijonis also said that the Bank of Latvia should lower the minimum reserve requirement for banks, which would float more money into the Latvian economy.

As reported, the International Monetary Fund has warned that more countries are at risk of following Iceland into bankruptcy, with the Baltic states now looking particularly vulnerable.