Latvia asks for aid

As WBJ went to press, there was no official news on the amount the country wanted, but the Financial Times reported that the Latvian government was considering €5 (zł.19.82) billion to help cope with a large budget deficit, as well as to strengthen its financial sector and provide loans to companies.

The Latvian authorities had already planned about €1.42 (zł.5.63) billion worth of belt-tightening measures in the 2009 budget and this was presented as part of the country's negotiating strategy.

"If Latvia does not get international credit resources, there could be a failure to pay wages and pensions. The state will become insolvent," Finance Minister Atis Slakteris said at a meeting of the Latvian Parliament's budget and finance committee. Other parties involved in the rescue package for Latvia include the European Commission, the European Central Bank, the World Bank and the Nordic states.