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Dombrovskis has no official information on ECB's warning

Valdis Dombrovskis. Photo: LETA.
 RIGA, March 26 - Prime Minister Valdis Dombrovskis (Unity) cannot confirm that the European Central Bank has warned Latvia against taking in Russian money flowing away from Cyprus.

Dombrovskis emphasizes that he does not have such information and he has also discussed the matter with Finance Minister Andris Vilks (Unity).

The prime minister points out that the Bank of Latvia and the Finance Ministry are explaining the European Commission and the European Central Bank the differences between Latvia and Cyprus. The financial sector plays a much greater role in Cyprus than in Latvia. Latvia cannot be considered a financial center to the same extent as Cyprus or Ireland, adds the premier.

Commenting non-resident deposits at Latvian banks, Dombrovskis reminds that Latvian banks face much stricter capital adequacy and liquidity requirements in the non-resident sector. He does not predict a considerable influx of non-resident money from Cyprus.

As reported, European Central Bank officials have contacted Latvia, another European Union country that has received large Russian deposits, to warn authorities against taking in Russian money fleeing Cyprus, two sources familiar with the contacts said.

"It was made clear to our Latvian friends that if they want to join the euro, they should not provide a haven for Russian money exiting Cyprus," a eurozone central banker said.

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