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."

Riga - European Energy Commissioner Andris Piebalgs said Monday that a decision on whether the so-called Swedlink power cable joining Sweden and the Baltic states would go to Latvia or Lithuania could only be made after expert reports are delivered in July.

Speaking before delivering a presentation at an EU energy conference in the Latvian capital, Riga, Piebalgs told the German Press Service dpa that the route could not be finalized until technical reports have been submitted.

Riga  - The Baltic states of Latvia and Lithuania on Thursday saw fresh demonstrations from workers affected by the sharp regional economic downturn and subsequent hard-hitting government spending cuts.

Teachers led the way in the Latvian capital, Riga, with around 8,000 arriving from across the country to stage a protest march in favour of better pay and working conditions and against cuts in education spending.

The numbers participating were larger than expected, causing several streets to be closed.

Riga - The economic gloom afflicting the Baltic states got several shades darker Tuesday with a fresh forecasts revising expectations downwards.

Until mid-2007 the so-called 'Baltic Tigers' of Estonia, Lithuania and Latvia recorded Europe's fastest growth rates, but their economies have stalled spectacularly in the wake of the global downturn.

According to a spring forecast from the Estonian Ministry of Finance, the economy in the smallest of the Baltic states will contract by 8.5 percent in 2009.

Riga - Latvia's Parex Bank, which was nationalized in November to prevent its collapse, on Tuesday reported net losses of 124 million lats (232 million dollars) for
2008.

Chairman Nils Melngailis, who has helped stabilize the stricken lender since being appointed by the government, said he was optimistic about the bank's future prospects and that there was no need to rush to a sell-off of the bank's assets.

Riga - Latvia's Ministry of Foreign Affairs said Monday that it was investigating claims that it had fallen victim to a Chinese-based cyber-spying operation.

"There are threats at all times which we monitor and work to avoid," a ministry spokesman told the German press service dpa.

A co-cordinated cyber-spying operation, dubbed "GhostNet" by Canadian researchers who exposed the hi-tech spy ring, infected two computers belonging to the Latvian Ministry of Foreign Affairs, according to a new report.