Latvia better off than Greece

RIGA - Greece is currently in a much worse situation than Latvia, which can borrow on international financial markets on its own, says European Commission Representation in Latvia spokesman Janis Krastins, reports LETA. The European Commission has already provided Latvia with 2.9 billion euros within the framework of the international loan program, and is the country’s main international lender. “Greece’s debt amounts to almost 170 percent of its gross domestic product and, even after the partial write-off, it is to be reduced to 120 percent by 2020. It will have to carry out austerity measures for several years.

Latvia’s debt stands at around 50 percent,” emphasizes the European Commission. It is planned that Greece’s debt will be reduced by decreasing the value of Greek government bonds, and the country will have to repay the money it borrowed from the lenders in full.
Prime Minister Valdis Dombrovskis (Unity) said on Oct. 27 that Greece will be able to avert bankruptcy, but it has lost the trust of investors and will pay increased interest rates on its remaining debt.