Euro adoption has saved EUR 66 mln in five years in service of government debt

Euro adoption in five years helped Latvia to save EUR 66 mln in service of government debt, Finance Ministry’s representative Ieva Veja said LETA.

She said that five years have passed since January 1, 2014, when Latvia adopted the euro.

“It was a historic event for Latvia, and its most positive benefits is averted risk of devaluation of the national currency, increase of the state credit rating, further Latvia’s integration in the EU,” said Veja.

Even though the impact of the euro adoption cannot be separated from the overall developments in Latvia and the world, Latvia’s economic growth in the past five years has been steep, the gross domestic product (GDP) has grown 3.3% a year on average.

“The growing credit ratings and confidence of investors ensured that the county can attract the necessary financial resources with low interest rates, and as a result, service of the government debt in 2018 compared to 2013 had declined by EUR 66 mln,” said Veja.

Also, interest rates for loans to companies and households declined.

Euro adoption has also ensured direct support to the economy in such aspects as currency conversion costs and currency risks, promoting external trade and international tourism.

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