Riga - A government bailout of Latvia's largest indigenous bank, Parex Banka, was set to be finalized Monday after the European Commission (EC) signalled it would not block the deal.

Latvian Finance Ministry spokesperson Diana Berzina told Deutsche Presse-Agentur dpa that an "unofficial okay" had been received from the EC along with their comments on the deal.

She added that final confirmation from the EC was likely one or two days after the legal document was due to be signed in a closed meeting on Monday night.

Riga - With sales of new cars in Latvia shrinking by more than a third in the first ten months of 2008 according to figures released Monday, it was left to carmakers at opposite ends of the price spectrum to report the strongest results.

Total sales of new cars in the Baltic country for January to October dropped to 10,434 from 17,239 in the same period last year, according to the Latvian Authorized Car Dealers Association.

Riga - There was mixed news on the Latvian economy Monday with official statistics recording a month-on-month rise in the consumer price index (CPI) inflation figures but a continuing downward trend year-on-year.

The Latvian Central Statistical Bureau said that compared to September 2008 inflation for October 2008 rose by 1.2 per cent to stand at 13.8 per cent year-on-year.

In September, Latvian annual inflation was 14.9 percent.

Riga - With sales of new cars in Latvia shrinking by more than a third in the first ten months of 2008 according to figures released Monday, it was left to carmakers at opposite ends of the price spectrum to report the strongest results.

Total sales of new cars in the Baltic country for January to October dropped to 10,434 from 17,239 in the same period last year, according to the Latvian Authorized Car Dealers Association.

With an economic downturn well underway, Latvians appear to be weaning themselves off their hitherto insatiable appetite for the latest automotive metal and are making do with older models and cheaper new cars.

In October, just 1,183 new cars were registered, the lowest monthly figure of the year.

Riga - Latvia's largest

Riga - Latvia's largest indigenous bank, Parex Banka, confirmed that it was seeking government help in what amounts to a partial nationalization in a surprise move on Sunday morning.

Parex Banka is the second largest bank overall in the Baltic country. It posted profits of more than 12 million lats (22 million dollars) in the first nine months of 2008.

A statement released by Parex in the early hours of Sunday morning said, "In accordance with the terms of the agreement between the bank and the Latvian state, 51 per cent of Parex Banka's shares are being sold to the state."