EU – Baltic States, Financial Services, Latvia
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 05:59
Euro adoption has saved EUR 66 mln in five years in service of government debt
She said that five years have passed since January 1, 2014,
when Latvia adopted the euro.
"It was a historic event for Latvia, and its most
positive benefits is averted risk of devaluation of the national currency,
increase of the state credit rating, further Latvia’s integration in the
EU," said Veja.
Even though the impact of the euro adoption cannot be
separated from the overall developments in Latvia and the world, Latvia’s
economic growth in the past five years has been steep, the gross domestic
product (GDP) has grown 3.3% a year on average.
"The growing credit ratings and confidence of investors
ensured that the county can attract the necessary financial resources with low
interest rates, and as a result, service of the government debt in 2018
compared to 2013 had declined by EUR 66 mln," said Veja.
Also, interest rates for loans to companies and households
declined.
Euro adoption has also ensured direct support to the economy
in such aspects as currency conversion costs and currency risks, promoting
external trade and international tourism.