Latvia - euro link under pressure

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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