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Foreign Relations

Swedish Banks Played Part in Latvian Crisis

Published torsdag 12 mars 2009 kl 13.07
Valdis Dombrovskis

Swedish banks are partly to blame for Latvia’s growing economical crisis. The former Latvian Finance minister Valdis Dombrovskis, officially chosen as the new Prime Minister on Thursday, says that the generous loans given by the Swedish banks contributed to the country’s current financial situation.

In an interview with Swedish newspaper Dagens Nyheter Dombrovskis says that Latvia is close to bankruptcy.

He blames the economical situation partly on the previous political establishment and partly on a rapid credit growth which spiralled out of control.

According to Dombrovskis, the Swedish banks have not broken any rules, but there is no denying that they helped cause the problem

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