Fitch Ratings says that the final decision of ECOFIN whether or not to invite Latvia (BBB/Positive) to join Eurozone (due by June 9) will trigger country’s sovereign rating review. Agency maintains that euro adoption would deliver net benefits for the Latvian economy and is likely to lead to a rating upgrade.
Fitch’s base expectation is that Latvia complies with Maastricht criteria and will be invited to join Eurozone as of January 1 2014. Convergence report to be published by EC and ECB on June 5 is going to be a strong indication of the formal decision. Fitch reminds that previously no country that has met the quantitative criteria has had its euro bid rejected.
At the same time criteria compliance needs to be “sustainable”, which leaves room for considerations and recommendations, as well as posing the risk that euro adoption could be delayed. The considerations include high level of non-resident deposits, but Fitch believes that government’s commitment to adopting euro would translate into willingness to solve this issue.
Related Articles
Ghana becomes first African nation to export legal timber to EU under FLEGT licence
Ghana has issued its first timber legality licences, making it the first country in Africa and only the second in the world after Indonesia cleared to export timber to the European Union, reports ... more
Convicts at several Latvian prisons riot over ban on gaming consoles
Inmates in several Latvian prisons have staged protests believed to be sparked by upcoming restrictions on modern gaming consoles, Delfi and later local news agency LETA reported on August ... more
Latvian ex-cop arrested over offering bribe on behalf of blacklisted Russian
A former Latvian police officer with a criminal record was detained by Latvia’s Corruption Prevention Bureau (KNAB) over an alleged attempt to bribe an Interior Ministry official on behalf of a ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
20 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago