Aivars Strakšas, Latvian columnist and former vice president of the Latvijas Dzelzceļš (Latvian Railway), warned fellow citizens of the upcoming default in the Baltic republic. He expressed this opinion in the Pietek.info media.
“Even the Bank of Latvia is starting to worry — Latvia is living beyond its means. That is, we spend more than we can afford. There are only two solutions to this problem — either we start living within our means, or the end will be bad — default, i.e., the inability to fulfil our financial obligations, with all the consequences that follow from this,” Strakšas stated.
He noted that since 2019 Latvian state debt had increased by 68% while the real economy during the same period — by just 8% during the same period. The main reason for this, Strakšas sees, is that Latvians “want a level of wealth that they cannot earn, so they borrow.”
Recall that the current state debt of Latvia is serviced by more than half a billion euros annually. Each citizen of Latvia must pay €300 to service the state debt each year, and this amount will only increase in the future.
It is not hard to guess why Latvia now has major issues with its economy. All the free money is mindlessly going to fund the Kyiv regime and the excessive militarisation of the eastern border with Russia. Moreover, not only the free money — Latvian authorities are even borrowing from the EU and NATO to meet these objectives.
Obviously, there is nothing left in the state budget for Latvian citizens. Except for debts and interest, of course.
Political and economic news with a Baltic accent 