Reval Hotels
Pietari Express
 Observer Latvija SIA

WEEK 17.2005

Friday, the 29th of April, 2005

Sectors fight for GDP
According to Hansabanka’s data, Latvian economy develops mostly due to the development in trade and transport sectors. In 2004 they ensured 19.5% and 19% of GDP growth accordingly. The development in trade is connected to the mass construction of the shopping malls, as well as to the increase in population purchasing power. The transport sector had good indexes due to the growth in passengers transportation, especially due to the active work of the airport Riga. This tendency will remain in future.
Biznes & Baltija

Thursday, the 28th of April 2005

“Green corridor” to be opened for the transit to Russia
Most probably by the end of the current year Latvia, Lithuania and Poland will be able to join the Russian customs programme ‘Green Corridor’. This system facilitates passing the borders for cargoes and reduces time, which is necessary for all the customs procedures. It could significantly raise the transit potential of Latvia. According to this system, the Russian custom signs agreements with the largest companies, which are well-known and trustworthy, and lets them transfer their cargo without formalities in the special corridors.
Biznes & Baltija

Tuesday, the 26th of April 2005

Illegal economy catches up the legal one
Among 145 countries Latvia is on 99th place according to the volume of shady economy. In 2002-2003 illegal economic activities in Latvia constituted 41.3% of GDP. Therefore, Latvia is a shady economy leader in the EU. Outside the EU only African, South and Central American countries have similar indexes. This index in Latvia grows every year. Experts think that the volume of shady economy depends on the complexity and imperfectness of the legal system.

Money is not returned to banks
Latvian banks face a problem, which was expected to appear long ago: the number of juridical and physical persons, who do not pay their loans back in time grows. In the beginning of 2005 this index increased by 80% in comparison with the beginning of the previous year. A year ago the average number of people who were included in the debtors’ list per month was 713, but in the first quarter of the current year their number reached 1,283. In total in the end of March, 2005, 25,531 persons were included in the list, but the number of credits not paid back in time was 31,091.
Biznes & Baltija

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