crisis in latvia

Euros Siphoned to Sweden?

Swedish banks are the biggest lenders in the Baltic - but according to a Europan Commision document they may be helping to make the economic crisis in Latvia worse. The unofficial draft, obtained by news agency Bloomberg, says that Swedish banks' subsidiaries in Latvia may be draining the country of much needed euros through repaying loans to their parent companies.

This would go against the aims of the international bail out packet for Latvia that the Swedish government is involved with.

No banks were named, but a spokesperson for SEB says that the EU document 'sounds like pure speculation' while the press manager at Swedbank affirmed the bank's long-term committment to operations in Latvia.

Finance Minister Borg said on Tuesday that Swedish banks in the Baltic countries must behave responsibly.