Latvia will report lending resumption only after two biggest Swedish banks do that, but is seems they do not intend to, says Monetary Policy Department of the Bank of Latvia adviser Mārtiņš Bitans (Bitāns), without mentioning exact banks.

Mārtiņš Bitans

Bitans suggests companies in need for financing should look for foreign investments. He points out currently there is money circulating the world, these are funds investors are ready to place in successful future projects. Unfortunately this money does not reach Latvia due to the state’s low credit rating, reports LETA.

In order to attract investments, it is necessary to improve Latvia international credit rating by reaching short-term, average-term and long-term goals, says Bitans.

The expert calls 2012 budget deficit 3% of GDP (gross domestic product) a short-term aim. Similarly 2012 budget consolidation should be discusses only after the next year’s budget is adopted. As there is no room for tax rise any more, structural reforms will have to be implemented in 2012, points out Bitans.

Latvia joining the eurozone in 2014, according to the Bank of Latvia expert, is an average-term goal, whose implementation will eliminate speculations on possible manipulations with the exchange rate, it will also promote external trade and external resources availability. The expert says qualitative education system development is a long-term goal.