Riga  - Latvia's transport minister, Ainars Slesers, called for legislation Monday to punish the Scandinavian banks dominating the Baltic banking sector for "irresponsible activity in handing out money" over recent years.

Speaking on the LNT television channel, the controversial politician blamed Scandinavian banks operating in the region, which include Swedbank, SEB and Danske Bank, for contributing to an economic crisis in Latvia that forced his government to seek a 10-billion-dollar international bailout in December.

Slesers suggested laws could be introduced restricting the banks' rights to pursue debtors and seize assets from defaulters.

Riga- The foreign ministers of Latvia and Lithuania met in the Latvian capital, Riga, on Friday in a bid to resolve long- standing uncertainties concerning their mutual sea border, and plan how to link the Baltic states' energy systems to the larger European grid.

Newly-installed Lithuanian Foreign Minister Vygaudas Usackas admitted that he was already acquainted with his Latvian counterpart, Maris Riekstins.

Riga - A rail crash near the Latvian city of Ventspils killed two people Saturday and caused a huge fireball when up to ten tanks of diesel fuel ignited.

A train transporting diesel collided with stationary wagons, probably during a shunting maneuver, according to the state fire and rescue service, as reported on Latvian television. Up to ten large fuel tankers ignited, with flames leaping into the sky, visible from 10 kilometres away.

Riga  - The management of the Latvian national airline, airBaltic, will buy out the 47.2-per-cent stake of the company currently owned by Scandinavian airline SAS, the companies said Thursday evening.

An official airBaltic source confirmed the news to Deutsche Presse-Agentur dpa after an SAS company statement said a deal had been reached.

Brussels  - Talks between the European Union and Latvia on providing financial aid to the Baltic country have reached the final stretch, with a decision expected in the coming hours, EU Monetary Affairs Commissioner Joaquin Almunia said Thursday.

"We are pursuing ways in which we can contribute to financing the (aid) package with the International Monetary Fund and other partners," Almunia said in Brussels.

"We are in the last phase," he said.

Riga/Tallinn/Vilnius  - Economists are predicting doom and gloom for the Baltic states throughout 2009 and beyond. with jobless figures rising in Estonia, Latvia and Lithuania and swingeing public spending cuts already starting to bite.

According to Neil Shearing, a Baltic expert with London-based Capital Economics, the recession in the Baltics looks set to deepen. "We now expect output to contract by 5 per cent next year and by up to 1.5 per cent in 2010," he said.

However, after surviving 50 years of Soviet occupation, which they only threw off in 1991, Balts have a longstanding reputation for stoicism in difficult circumstances.