Latviski English По-русски
Saturday 22.10.2016 | Name days: Irīda, Īrisa

Rimsevics: Eurozone may benefit from Greece’s exclusion

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAccording to Governor of the Bank of Latvia Ilmars Rimsevics, the Greek people have basically voted themselves out of Eurozone, which could benefit from this in the long run, as reported by

In his interview to Latvijas Radio and LTV, Rimsevics mentioned that he believes Greece’s exclusion from Eurozone is the most likely scenario. He explained that «the current situation requires someone to open up their wallet, but no one is prepared to put 30-50 billion euros on the table».

Rimsevics did mention the possibility that one or multiple countries may take the initiative and gather the aforementioned sum of money. But as long as there is no money and no progress in talks, exclusion from Eurozone remains the most likely scenario.

Even though European leaders use every opportunity to convince Greece to change its position in talks, there is no possibility of writing off debts.

Rimsevics adds that Eurozone could benefit in the long run if Greece exits the monetary union. In addition, Latvia has no reason for concern.

The head of the Bank of Latvia also mentioned the decision of the European Central Bank to maintain support for Greece at its current level but request three times larger pledge amount as a form of guarantee. «With that, the previously pledged bonds are not considered safe enough to back EUR 89 billion,» – said Rimsevics. «This means that a moment will come when Greece will have to think on its own about dealing with this situation,» – added Rimsevics.

BNN had previously reported that the Greek Finance Minister resigned from his post earlier this week. Prior to his resignation, Greek voters supported his proposal to decline conditions set by international creditors.


Leave a reply

  1. Ilmars says:

    And what happens when Spain, Portugal, Malta, Cyprus, Italy follow Greece out of the eurozone. The anti-eurozone National Front is the second party in France and Briitain will be having a referendum on this issue shortly.
    The eurozone has brought misery and poverty to too many of its citizens. Even worse, much of this has been self inflicted by the incompetence of the ECB itself. After the global financial crisis, why did they throttle the eurozone economy with anti-inflationary austerity policies when expansionary policies were needed.
    The ECB is a useless bunch of incompetent stumblebums who will single handidly destroy the eurozone itself.
    The problem with bankers like Rimsevics is that they know the price of everything, and the value of nothing.

    Thumb up 0 Thumb down 0

    • jj says:

      Greece will not leave the eurozone – the vast majority of Greeks (including the government) want to stay in the eurozone, and they will.

      They voted on Sunday against austerity, which is understandable. However the cause of the austerity was not the ECB but the incompetence and corruption of Greek politicians which has existed since long before they joined the EU. Had the Greek politicians kept to the promises they made years ago (such as, for example, the privatisation of the port at Piraeus) the pain would have been much more bearable.

      The other countries you have mentioned have all suffered austerity due to the financial crisis of a few years back and are now growing again – none of them have any popular desire to leave the eurozone.

      (Britain is not having a referendum on the eurozone – they have never been in the eurozone!)

      Thumb up 0 Thumb down 0

  2. Ilmars says:

    Rimsevics comments were just part of a PR campaign to soften up public opinion for “grexit”. Decisions have already been made to throw greece out. No proposals from greece would have been good enough. Indeed, i saw a report that the EU is preparing humanitarian aid of food and water for greece.
    Hovever, there are going to be political repercussions around europe of how the greeks have been treated. This is just round one. The anti-eu genie is about to come out of the bottle.
    Regarding Britain – obviously Britain is not a member of the euro, but their referendum is about something bigger than a currency. It is about membership of the EU itself. Given the electoral victory of the euro sceptic Conservatives over the pro EU Labor Party, as well as opinion polls, Britain will likely exit the EU entirely.
    “we live in interesting times”

    Thumb up 0 Thumb down 0

  3. Linda says:

    Am sure the Eurozone will exist for many years to come …. unfortunately. The UK prefers to keep the pound but the referendum is about EU membership if Tories can’t renegotiate some of the terms of membership. UK does need to stay in the EU if only to keep German & French command in check.

    Thumb up 0 Thumb down 0

Four teachers in Latvia are paid wages that exceed EUR 2,000

In September 2016, the biggest teacher’s salary paid in Latvia with bonuses was EUR 2,260.27, as LETA was informed by Education and Science Ministry.

Producer price level down 1.6% in Latvia’s industry

Compared to August, the level of producer prices in Latvian industry increased by 0.3% in September 2016.

SRS Tax Debt Enforcement Office director Cerneckis steps down

On Friday, 21 October, director of Latvian State Revenue Service’s Tax Debt Enforcement Office Kaspars Cerneckis submitted his resignation.

Bookmakers predict Sadurskis’ remainder in his post for the rest of the year

Latvian Education Minister Karlis Sadurskis has been forced to distance himself from political opponents and teacher trade unions because of criticisms regarding reduced wages caused by the teachers’ pay reform. Nevertheless, political support will keep the minister in his post, bookmakers believe.

Lithuanian military discussing deployment of long-range missiles

A senior Lithuanian military officer has on October 20 stated that Lithuania is considering the deployment of long-range missiles in the country in the framework of hosting a multinational NATO battalion in 2017.

Ukraine in joint declaration with Lithuania, Poland condemns WWII aggressors

The Vekhovna Rada of Ukraine has this week adopted a joint declaration with Lithuania and Poland attaching responsibility for World War II to Germany, the USSR and the international community’s «appeasement policy».

Saeima Budget Committee conceptually approves 2017 budget project

On Thursday, 20 October, Saeima’s Budget and Finance Committee supported the state budget project for 2017, the medium-term budget contents for 2017, 2018 and 2019 and 57 legal drafts associated with the project.

Facebook sorry for removing breast cancer informative video

Facbook has expressed apologies for the removal of a breast cancer informative video shared on the social network by a Swedish foundation.

Two of the last twenty three first refugees have left Latvia

The last two of the first twenty three refugees resettled in Latvia have left for Germany, as reported by LTV.

Pregnant woman in Italy dies after doctor allegedly refused to perform abortion

Police in predominantly Catholic Italy is investigating a case of a woman pregnant with twins dying after miscarriage.

Russia applies discount on transit from Belarus

Russian Railways has applied a 25% discount on petrol, diesel fuel and crude cargo transports from oil processing plants in Belarus to Russia’s north-west ports. With that, Russia has basically provided Belarus with tariffs equal to tariffs in Baltics.

The first container train headed for Riga departs from China

On Thursday, 20 October, Latvian Transport Minister Uldis Augulis, representatives from LDz and YXE International Container Train, multiple Chinese officials and Latvia’s ambassador in China Maris Selga saw off the first test container train from China to Riga.

Customs officials intercept hashish shipment worth EUR 2 million

Latvian State Revenue Service’s Customs Police intercepted and confiscated a shipment of more than 200 kg of hashish worth EUR 2 million, as journalists were informed by SRS Customs Police Director Kaspars Podins on Thursday, 20 October.

SA: Riga Freeport has only realized one of five of our recommendations

Latvian State Audit follows the development of the largest investment projects especially carefully, because the state does not seem to handle them all that well. Krievu Island project is one of the largest investment projects, because there is European Union finances invested in it...

Job seekers in Lithuania want Western salaries, employers dumbstruck

Although Lithuanian labour market is in desperate for workforce, but those willing to toil will nod to a job offer only if the pay is really big. So big that the country‘s hirers feel like grabbing their heads upon hearing the candidates‘ salary expectations.

Overall government budget decreased in 2015

In 2015, the general government budget deficit amounted to EUR 309.0 million or 1.3% of the gross domestic product, whereas the general government consolidated gross debt amounted to EUR 8 846.3 million or 36.3% of the GDP.

SP: claims about Motorola’s murderer are an attempt to show Latvia as the enemy

Latvian Security Police views claims that Donetsk military commander Arseny Pavlov, aka Motorola, was allegedly killed by a hired killer from Latvia named Marks Ozolins is nothing more than yet another attempt at information war aimed to demonstrate Latvia and its citizens and enemies.

Estonian President Kaljulaid not to ask state to pay rent

Estonia’s new President Kersti Kaljulaid will not ask the state to pay rent for using her home unlike the former head of state Toomas Hendrik Ilves did.

Every third coin with Milda’s image has made its way to Europe

Every third euro coin with Milda’s image has found its way to Europe. The proportion of those coins in Latvia is 71% of all euro coins in circulation, according to monitoring data compiled by Citadele Bank’s CBL Cash Logistics service.

Estonia plans to increase female proportion in military

Estonia has announced plans to triple female involvement in the country’s Defence Forces and to expand the list of units accessible to woman soldiers by 2018.

Pre-paid mobile card users to be registered as part of a plan to reduce grey economy

At the meeting of state secretaries on 20 October, a proposal was presented from the transport ministry to begin registration of mobile pre-paid card users.

Next year’s budget plan and other decisions viewed by Saeima this week

On Thursday, 20 October, the Saeima will gather for an extraordinary meeting, during which deputies will discuss the next year’s budget plan and 57 associated legal drafts.

European Space Agency attempts to re-connect to its Mars probe

The European Space Agency has lost contact with its Mars probe on October 19 shortly prior to its planned landing on the planet.

Klauss withdraws from SRS personnel selection process

Kristaps Klauss, executive directors of Latvian Forest Industry Federation, has decided to withdraw from State Revenue Service’s personnel selection process.

Lembergs to continue testifying in court at the end of October

Aivars Lembergs, who is accused of serious crimes, will continue testifying in his own criminal case on 31 October, as confirmed by Riga Regional Court’s press-secretary Raimonds Locmelis.