A highly leveraged business sector could amplify any economic downturn as companies are forced to lay off workers and cut back on investments. Investors, financial institutions, and regulators need to focus on this risk today, while times are good. Second, today business debt does not appear to present notable risks to financial stability.
However, we are closely monitoring the new European currency. We hope that the euro will become a stable currency and anticipate its wider use in world trade. If this happens, we will have all the necessary economic grounds for joining the European Monetary Union after Latvia’s accession to the EU. BIS Review 124/1999  4