World of Coins

Euro coins => Euro news and basics => Topic started by: Figleaf on October 07, 2009, 11:40:34 PM

Title: Latvia - euro link under pressure
Post by: Figleaf on October 07, 2009, 11:40:34 PM
I just heard that a Latvian sovereign rights (government bonds) issue of 11.5 million euro at six months has not attracted a single bid. Latvia has unilaterally linked its currency, the lat, to the euro. If there's no financing forthcoming (e.g. from Sweden) even for such a small amount, the euro-lat link may become untenable. Other Baltics and Sweden may be affected by a Latvian devaluation.

Peter