But he said remained confident that an emergency IMF bail-out worth
£6.7bn would remain unaffected by the political instability.
New Era, Mr Dombrovskis's party, confirmed it had already extended
invitations to other parties to join a new coalition in an attempt on
gain the majority in Latvia's 100-seat parliament.
It attempted to play down concerns about the prospect of a minority
government at the helm of country in severe economic turmoil.
Laila Dimrote, a spokeswoman for New Era, said: "This is not a big
deal. Latvia has had many minority governments in the past, and often
this is the case prior to elections."
Hopefully, subscribers and readers are taking full advantage of the research at hand (see
in a depression. This economic contagion will be both converted into
financial contagion through the banking system and transmitted as both
financial and economic contagion to the wealthier western countries that
have large economic claims on Latvia and do trade with them.
graphic to enlarge...
For more opinion and analysis, see:
- and Financial
Contagion vs. Economic Contagion: Does the Market Underestimate the
Effects of the Latter?
I will be publishing the foreign claims model (which will tie all of the
myriad global risks into one, cogent risk model) and my analysis of
Italy early next week for subscribers, along with a free accompanying
analysis for non-paying subscribers and readers. Ireland, the UK and
Spain are on tap...
Earlier installments of the Reggie Middleton's Pan-European Sovereign Debt Crisis