Reirs and EU commissioner discuss finances, lending and macroeconomics

• Published date: 22 July 2022
• Publication title: LETA

RIGA, July 22 (LETA) - Finance Minister Janis Reirs (New Unity) and the European Union's Commissioner for Financial Services, Financial Stability and Capital Markets Union Mairead McGuinness discussed current issues concerning the financial sector, lending and macroeconomics, as well as implementation of sanctions against Russia, LETA was told at the Finance Ministry.

McGuinness met with Reirs on Friday as part of her tour of Baltic states.

ccording to the ministry's representatives, Russia's war in Ukraine has left a negative impact on the Latvian and global financial system. During the meeting with the EU commissioner, the Latvian finance minister indicated that despite this impact, Latvia's largest domestic loan providers are showing greater stability than lenders in the EU on average.

The banking sector's overall resilience to economic shocks can be regarded as good. In following months, however, the situation can be affected by rising energy prices, general inflation, supply issues and slowing economic growth.

Reirs noted a number of challenges currently facing the Latvian finance sector, including high interests rates which exceed the EU and eurozone average because of a lack of competition in the segment of corporate lending, as well as an underdeveloped capital market. The finance minister therefore welcomed the European Commission's initiatives aimed at...