Riga - The chief executive officer of the largest bank in Latvia has resigned according to a company statement released Monday, while attempts to stabilize the Baltic state's second-largest bank have cost more than 1.5 billion dollars, it has been confirmed.

"Maris Mancinskis will become the new Head of Swedbank in Latvia from February 12, 2009. He succeeds Maris Avotins, who resigns from his post and will continue his work for Swedbank Group, said a statement from Swedish-owned Swedbank, which operates in all three Baltic states and is particularly strong in Latvia.

Riga - The chairman of one of Latvia's leading drinks manufacturers said Thursday that a combination of increased duty on alcohol and the Baltic country's bleak economic outlook could drive drinkers to produce their own moonshine in illegal stills.

"Rapid excise tax and VAT rate increases will lead to rapid decreases in sales volumes. It does not mean that people will reduce their consumption of alcoholic drinks. This situation will favour the production of illegal alcohol," said Karlis Andersons, chairman of Latvijas Balzams, in a note to the Riga stock exchange.

Riga - The chairman of one of Latvia's leading drinks manufacturers said Thursday that a combination of increased duty on alcohol and the Baltic country's bleak economic outlook could drive drinkers to produce their own moonshine in illegal stills.

Vilnius - Lithuania looks set join Baltic neighbours Estonia and Latvia in recession soon, after figures released by the Lithuanian statistics office Tuesday said GDP fell by 1.5 per cent in the last quarter of 2008 compared to growth of 2.9 per cent in the third quarter.

Estimated average growth for the whole of 2008 was 3.2 per cent.

"Today's GDP figures confirmed our expectation that the economic development in Lithuania is lagging behind the other two Baltic countries, which are already in recession," commented Danske Bank analyst Violeta Klyviene.

Riga - The prime ministers of Baltic neighbours Latvia and Lithuania said Monday they would send a joint letter to the European Commission calling on the EU to prioritise the construction of an energy link between the Baltic states and Sweden.

Riga  - During national crises, nations often turn to the things they hold dearest, including their national flag.

That is case in Latvia where, despite major problems such as a collapsing economy, riots in the capital city and a constitutional face-off between parliament and president, part of the Latvian government is turning its attention to whether the national flag is the right colour.

The Baltic state's foreign ministry has noticed that several different shades of red are being used on flags that are commercially available.