Friday, the 1st of April, 2005
Bite GSM receives licence
During the auction the Lithuanian company Bite GSM bought the third UMTS/GSM licence for EUR 9.581 million. Its mother company, Danish TDC, has subsidiaries in 11 European countries and provides a wide range of telecommunication services. It is also a partner of the world leader in mobile communications, Vodafon. Specialists forecast, that when the enterprise begins its work, the tariffs would decrease at least by 20%. At present due to the weak competition the tariffs in Latvia are by 2-3 times higher than in other Baltic States.
Deficit from EU
In the last quarter of 2004 the current accounts deficit in Latvia was 7.7% of GDP. In total in 2004 this index reached 12.3% of GDP. The senior analyst of Hansabanka, Liene Kule, noted that it corresponds to the initial expectations. However, such a high index has negative influence on the further development of the national economy. This year the situation should improve.
Thursday, the 31st of March, 2005
Due to the sharp competition in mortgage crediting sector, the leading Latvian banks refuse from profit and offer their services for dumping prices. At present they offer their clients changing interest rates, Rigibor and Euribor. However, Hansabanka began offering mortgage credits in lats and euros with 0% rate. One can apply for such credit before August 1, 2005. In this way Hansabanka wishes to increase its market share from 26% to 30%, but it has to sacrifice its profit.
Wednesday, the 30th of March 2005
Private companies show minimal wages
According to the Central Statistical Bureau data, 3.5 thousand employers in Latvia receive salaries, which are less than the minimal salary, EUR 114. Most of them work in the insurance companies, processing industry, trade industry and clothes producing sector, and mostly in the private companies. In general 24.7% of employers receive EUR 214.3-357.14, 19.2% EUR 142.87-214.28, 16.7% EUR 357.15-571.42, 14.5% have minimal wages, 6% EUR 114.3-128.55, 4.2% receive more than EUR 714, 0.5% less than EUR 114.
Tuesday, the 29th of March 2005
In 2004 construction volume in Latvia reached EUR 908.28 million, which is by 13.1% more than in 2003. It is expected that this year the growth will be even more significant. Construction of new houses increased by 20.3%, and repair and reconstruction by 8% in comparison with the previous year, according to the Central Statistical Bureau data. 49% of all the construction works took place in Riga.
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