Thu, 21 Oct 1999: Latvia’s interbank rates rise…



13 and 8.57 percent on Oct. 13. It could be the demand for capital, said Andris Berzins, president of Unibanka."When we need more money to reactivate our economy, it is normal," he said. "The political fight in Latvia affects the stability of lats and is responsible for last month's raise in interest."Valery Kargin, president of Parex Bank, said rates will be undependable until the Baltic states join euroland in 2002 to 2003. "Banks must survive until then, but then we will have a fluctuation in interbank credit," he said.Several analysts at a meeting of CEE bankers in Riga said while economic structures want to make money, following the Russian crisis banks have become much more cautious. This caution has caused credit portfolios to decre... Read the rest of this entry »

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