03 January 2013

LATVIA / IMF / EUROZONE : Riga Overdoes Austerity; Warned To Calm Down On Cuts.


     Here's an unusual eurozone case.
     Little Latvia has cut back its social safety net so much...that the IMF now warns Riga is endangering its poor and unemployed...and feeding its fastest emigration in a decade...as youths flee the country.
     But...the Baltic nation repaid its 2008 $9.9 billion IMF bailout...so no other authority has control over its budget.
     Plus...ratings agencies especially like what they see...and have raised Latvia's credit worthiness.