European Commission approves Latvia’s membership of Eurozone
05.06.2013,
18:21
Latvia will become the 18th country to use the euro after being approved for membership by the European Commission, RBC reported. In a report, the Commission confirmed that the Baltic state had met the criteria for joining the single currency.
YEREVAN, June 5. / ARKA /. Latvia will become the 18th country to use the euro after being approved for membership by the European Commission, RBC reported. In a report, the Commission confirmed that the Baltic state had met the criteria for joining the single currency.
The country will start using the currency at the beginning of 2014 after meeting the criteria for membership, including low inflation and long-term interest rates, as well as low public debt.
Latvia underwent one of Europe's toughest austerity programs after the 2008-2009 financial crisis knocked a fifth off its GDP. Its membership still has to be approved by EU leaders and the European Parliament, but that is seen as a formality. EU finance ministers are expected to sign off the accession in July.
The European Central Bank (ECB) also gave its blessing to Latvia on Wednesday ahead of the Commission's announcement, but warned high foreign deposits in its banks were a risk to financial stability.
"The reliance by a significant part of the banking sector on non-resident deposits as a source of funding, while not a recent phenomenon, is again on the rise and represents an important risk to financial stability," the ECB said. -0-
