Latvia

Latvia struggles to meet conditions of IMF handout

International Monetary FundRiga  - The Latvian government outlined a bleak scenario Tuesday of spending cuts even more stringent than those already announced as the embattled Baltic state struggles to meet economic criteria laid down by the International Monetary Fund (IMF).

Speaking after a lengthy extraordinary meeting of the cabinet, Finance Minister Einars Repse said the situation "forces us to look into expenses we promised to leave untouched earlier."

Those expenses are likely to include politically sensitive items such as pensions and healthcare, which had been partially shielded during earlier rounds of cutbacks.

Latvian priest detained for smuggling phone in cake for prisoner

Latvian priest detained for smuggling phone in cake for prisoner Riga - A priest was arrested in the Latvian capital Riga on Monday for allegedly helping to smuggle a mobile phone hidden inside a traditional Russian Easter cake into prison, the Baltic News Service reported.

The prison chaplain reportedly passed the celebratory "Kulich" pastry to an inmate at Riga Central Prison along with six eggs and an Easter card on behalf of a relative of the convict, according to information released by the Baltic state's prison service.

Latvian police offered days off for catching grass burners

Latvian police offered days off for catching grass burners Riga- Authorities in Latvia have launched a novel incentive scheme for police in a bid to tackle the annual scourge of burning grass.

Officers who apprehend a fire starter will be entitled to an extra day's paid holiday, Interior Minister Linda Murniece told reporters Thursday.

"We are unable to pay bonuses, but we have promised a paid day off in addition to the holiday allowance for each officer who catches a burner of old grass," the minister said.

Latvian and Lithuanian banks hit with ratings downgrades

Latvian and Lithuanian banks hit with ratings downgrades Riga  - Ratings agency Fitch slapped a fresh round of downgrades on banks in the Baltic states Thursday in the wake of its downgrade of the entire region a day earlier.

The Latvian subsidiaries of Swedish banks SEB and Swedbank saw their Support Ratings downgraded to '2' from '1'.

Latvia still tops EU on inflation despite downward trend

Latvia still tops EU on inflation despite downward trend Riga  - Annual inflation in Latvia dipped from 9.6 per cent in February to 8.2 per cent in March, according to figures released Wednesday by the Latvian national statistics office.

Despite the drop Latvia retains the highest inflation rate in the European Union, hampering efforts by the government of Valdis Dombrovskis to balance the books in the recession-hit Baltic state where GDP is expected to contract by 13 per cent in 2009.

EBRD to buy one quarter of Latvia's Parex Bank

EBRD to buy one quarter of Latvia's Parex Bank Riga - The European Bank of Reconstruction and Development (EBRD) confirmed Tuesday that it will buy a quarter stake in nationalised Latvian bank Parex.

The EBRD said it would acquire "25 per cent plus 1" of ordinary shares of Parex Bank for 84.2 million euros (111 million dollars) and extend a "subordinated loan" of 22 million euros (29 million dollars).

In the statement, the EBRD said the deal was subject to "the conclusion of legal documentation."

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