Currently, more than 60% of Latvian foreign trade is with the EU countries, and new export partners have been found in Latin America, Middle East and other regions. •  FDI still remains the main source of financing for the current account deficit. Denmark, USA, Sweden, Germany, Russia and the United Kingdom are at the top of the investor’s list.
Before the crisis, the authorities had few policy levers to provide liquidity or to resolve failures of nonbanks in a way that would avoid serious spillovers. Liquidity was ultimately provided to some nonbank markets, such as the markets for securities backed by consumer and business assets, but the facilities were far from simple and took substantial time to create and implement.