Devaluation not to be discussed-PM

  • 2009-06-02
  • TBT staff

Photo By Helmuts Guigo

RIGA- Despite the recent statement by government adviserBengt Dennis, Prime Minister Valdis Dombrovskis told the press that devaluation is not an option beingconsidered.

"No one knowsif there will be a devaluation tomorrow or in a few months -- the time frame isalways uncertain -- but we have moved beyond the question of whether there willbe a devaluation and should instead focus on how it will be carried out," Dennistold Swedish state television.

Justice MinisterMareks Seglins is not calling for devaluation, but stated that there needs to beoptions.

Seglins stated that the central bank andthe Finance Ministry should create estimates for the possible gains or lossesfrom a change in the value of the currency.

"I am not callingfor the devaluation of the lats, but there must be a debate," Seglins told reporters.

Banks are prepared for devaluation in the eventthat it occurs.

"I'm sure that local politicians, centralbanks, European Union and IMF offer necessary means to stabilize the situationin the Latvian economy. Especially IMF has good practice with helping thecountries which are in economic difficulties," said risk manager Goran Bronnerof Swedbank.