|WEEK 31sr 2004
Friday, the 30th of July, 2004
Standard&Poors increase Latvia's credit rating
The international credit rating agency Standard&Poors has increased Latvia's rating at long-term commitments in foreign currency from BBB+ to A- and gave a stable evaluation for the future. Standard&Poors indicates that rating shows Latvia's prospective development and forecasts that Latvia will join the European Monetary Union not later then in 2008. It means that it will reduce the negative influence of payment account deficit. The agency mentions the increase if GDP, low debt (16% of DP) and state budget deficit (2% of DP) as essential factors. The agency has determined Latvia's rating for long-term loans in lats in A- level, and for short-term loans in foreign currency and lats in A-2 level.
Thursday, the 29th of July, 2004
Minister: budget deficit will not be less
In 2005 in the state budget at least 2% deficit of GDP will have to be reserved, although Latvian Bank and European Commission requests Latvia to reduce deficit level due to threats of economy overheating. The minister of economy, Oskars Spurdzins, acknowledged that the threats of economy overheating exist, but the government has to take into consideration the social needs of the country.
Wednesday, the 28th of July, 2004
Ryanair will start in October
On October 31, the discount airline company Ryanair will start their work in international airport Riga. Ryanair will offer flights from Riga to London, Frankfurt and Tamper. The managing director Michael O'Leary promised that the ticket prices excluding taxes would cost from LVL 4.99, but at the beginning passenger would have to pay LVL 19.99 because airport taxes would be reduced from November 1. Depending on the season the maximal price of the ticket will be about LVL 80, but the average price will be LVL 25-30. The company plans to take about 300,000 passengers to Riga during 2005. If they will reach their target, the new routes to other cities will be opened.
Tuesday, the 27th of July, 2004
Latvia among leaders in increase of trade
According to the data by statistic bureau Eurostat, at the beginning of 2004 Latvia has one of the largest volume increase of external trade in the European Union. In the first four months of 2004 Latvia has exported the goods at the value of EUR 0.9 milliards and that is by 16% more than in the first four months of 2003.
Monday, the 26th of July, 2004
Producer's prices increase
Comparing to June 2003 the producer's prices in Latvia have increased by 8.1% and that is the highest increase since December 1996. The reason of producer's price increase was the price increase of export goods by 8.9%, but the prices of production realized in local market also considerably increased - by 7.5%.
SRS collected LVL 13.5 million
In the second quarter of 2004, State Revenue Service (SRS) collected LVL 13.5 million from importers of tobacco and alcohol for excise duty marks that are distributed for marking tobacco and alcohol. Excise goods department of SRS has distributed 1,828 mandatory invoices. In the first quarter of 2004 SRS collected LVL 15.7 million.
Baltic Weekly MonitorA