Latvia: Government Resigns

Why they do not run the country for my benefit? I thought the prime minister and president will call those "two parties" to step down ...

The flash note by Danske's Lars Christensen here !

Furtheron, Reuters reports:

LONDON, Feb 20 (Reuters) - The cost of insuring Latvian sovereign debt for five years rose on Friday by some 50 bps after the country's coalition government collapsed following the resignation of its prime minister, traders said.

Five-year credit default swaps (CDS) for Latvia were quoted at a mid-price of around 950 bps by traders, up from their Thursday close of 900 bps. This means it would cost about $950,000 a year to insure $10 million of Latvian debt over five years.

..........

Latvian CDS rose to a high of nearly 1,000 bps in October last year, a month before it went to the IMF for emergency funds.

Domestic vortex of debility goes on ...