Latvia Stability Programme Report

3 Key strengths of Latvia's credit profile 1 Flexible and resilient economy with strong and coordinated response to economic challenges 2 3 4 5 Prudent fiscal management in pre-COVID years provides fiscal capacity to absorb the negative impact of external factors on Latvia's economy Direct banking sector exposure to Russia, Belarussia and Ukraine is low, and these exposures have decreased significantly already since 2015 Good progress made to diversify sources of energy supply and ensure energy security NATO presence mitigates risks from geopolitical tension in region

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