Observer Latvija SIA
WEEK 11th. 2004

Friday, the 12th of March, 2004

Credits in lats could become more expensive
On March 11 the Bank of Latvia increased re-financing interest rate by 0.5% - up to 3.5%. It was necessary for to not allow Latvian macroeconomic risks to increase. The experts point out that it could make the interest rates for credits taken in lats more expensive. However, the Bank of Latvia does not think it could happen at once.
(Di ena)

Thursday, the 11th of March, 2004

Growth of export leaves behind import
January 2004 is the first month during the last years when Latvian goods export grew faster than import. The value of goods exported in January grew by 21.6% in comparison with the same month of 2003, the value of imported goods increased by 17.8%. In January 2004 import exceeded export by 61.9%.

What disturbs businessmen?
According to the research conducted by Latvijas Fakti, 71.2% of Latvian entrepreneurs think that the most serious obstacle for business development in Latvia is unpredictability of changes in laws, and 70.2% are sure it is high tax rates. 57% of businessmen also suppose that tax legislation and tax administration do not promote the development. Other important obstacles are expenses for use of infrastructure (49%) as well as high inflation (48.1%).

Wednesday, the 10th of March, 2004

Introduction of euro under threat
The sharp growth of inflation can disturb Latvia's plan to introduce euros in 2008. It could happen if inflation exceeds the requirements of Maastricht Convention that are obligatory for all the countries which want to join the euro-zone. The control after fulfilling all the requirements by Latvia will start from January 1, 2005.
(Kommersant Baltic Daily)

Trade with Germany activated
Last year Latvian-German trade had experienced significant progress. The export of goods from the Baltic States was EUR 1.7 billion, by 9.8% more than in 2002. The amount of goods imported to the Baltics from Germany increased by 6.1% and reached EUR 3.2 billion.
employers debts to their employees was LVL 2.25 million.

Tuesday, the 9th of March, 2004

Food prices grow significantly for the second month
For the second month in a row Latvia experiences sharp growth of food, medicine and petrol prices. In February they increased by 0.7% in comparison with January, and in comparison with the same month of 2003 the prices grew by 4.3%. Food products became more expensive by 1.6%: milk and milk products by 8.1%, sugar by 7.6% etc. The head of Nordea Markets Uldis Zelmenis explained that the level of inflation usually is higher than economical development, and the prices should be harmonized with the ones in the EU.

Monday, the 8th of March, 2004

European Bank for Reconstruction and Development loves Russia most of all
The European Bank for Reconstruction and Development has reported on its projects in different countries, including Latvia. During 12 years of its collaboration with Latvia the bank had provided financial help for implementation of 24 projects which total amount was LVL 332 million. For example, last year it gave finances to the company Rigas Udens for modernization of water handling facilities.
employers debts to their employees was LVL 2.25 million.

Previous weeks:
Back to
Baltic Weekly MonitorA

Pietari Express
Probalt Vaalimaa
 TERMS & CONDITIONS / KÄYTTÖOIKEUDET. © Oy Compiler Ab. All rights reserved.