OREANDA-NEWS. September 18, 2008. After three years of double-digit growth following the country’s accession to the European Union, Latvia this year is witnessing a steep economic slow down, reported the press-centre of EBRD.

More difficult external and internal conditions expose challenges which the EBRD points out in its latest strategy for Latvia, now available on:
http://www.ebrd.com/about/strategy/country/latvia/index.htm.

It is the EBRD’s last strategy for Latvia as the country is expected to graduate from the Bank by end-2010. The Bank started operations in Latvia in 1991 when it was set up and has since invested ?330 million which attracted a further ?900 million from its commercial partners.

In its analysis the EBRD has identified the following challenges facing Latvia:

Ensuring long-term competitiveness; further steps are needed to improve the business environment and strengthen productivity.

Supporting the further development of financial intermediation, mainly for small and medium sized enterprises, and improving corporate governance and business practices.

Promoting sufficient alternative energy supply, energy efficiency and renewable energy in order to enhance energy security, reduce energy intensity and meet environmental targets.

Modernising municipal and environmental infrastructure with the assistance of EU structural and cohesion funds, private sector involvement and commercial co-financing from local sources.

The EBRD’s priorities for the remaining years in Latvia will be to:

Provide higher-risk products for local corporations to fund their growth and achieve improvements in efficiency, with a focus on cross-border expansion.

Provide capital and medium to long term credit lines, specifically targeted at SMEs.

Promote investments to improve energy efficiency, to develop renewable energy, and contribute to energy security.

Support the involvement of the private sector in the provision of public services in cooperation with EU funds.