Latvia to adopt euro in 2014 - government

To introduce euro the country must meet the Maastricht criteria - ensure low inflation as well as the budget deficit not higher than three percent of GDP, while the amount of the state debt must not exceed 60 percent of GDP. After euro is adopted two currencies, the national lat and euro, will be in circulation for two months. In order to speed up the process, the change will be given only in euros.

Currency exchange will be made without bank commission for half-a-year after the country joins the eurozone. Besides, in order to restrict speculative price growth and prepare the citizens for the new currency, one quarter before the introduction of euro and one year after it prices of goods and services will be indicated in two currencies.

Latvia is undergoing an acute economic crisis. In order to overcome it the country plans to get an emergency credit of 7.5 billion euros from international financial organizations. For that, after consultations with IMF experts, the government and parliament approved at the end of 2008 a program for economic stabilization.

In line with that program, approved by international donors - the European Commission and the IMF, the introduction of euro may happen in 2012-2013. However, Latvia can reach the budget deficit figure of three percent of GDP only in 2012, which will make it possible to adopt euro no earlier than in 2014; Kazinform cites Itar-Tass.