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Latvia's debt burden is too heavy

Staff writer |
With the current development pace of Latvia, the country's debt burden is too heavy, President Andris Berzins said in an interview with the Latvian Television show "Rita panorama" this morning.

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"Our debt is about EUR 3,500 per capita, and it is high enough for us to be unable to pay it with the current development rate," said Berzins, adding that leaving such debt burden on the "shoulders of our future" is dangerous. He also stressed that the country must look for more ways how to motivate residents to be more enterprising.

The president said that there is nothing bad about the debt in itself if there is a feasible opportunity of investing the funds in state development. "In the case of Latvia, of course, the debt was accumulated as the money was used to cover past problems. This is why we must do everything we can in order to avoid such financial commitments and prevent the situation from progressing any further," said Berzins.

The president also pointed out the demographics issue in the country, as the population of Latvia keeps decreasing and the state is left with less people who can ensure growth. "We must develop a system that will make Latvia no worse than other countries," said Berzins.

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