London, 19 May 2014 -- According to Moody's Investors Service, an economic recovery in Europe, the increasing importance of domestic demand and the export composition of exports to Russia limit the impact of the Russia/Ukraine crisis on sovereign creditworthiness and the stability of banking systems in the Baltic region. That being said, the importance of non-resident deposits in the Latvian banking system remains a source of vulnerability, though this is mitigated by a number of idiosyncratic factors.

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