Standard&Poor’s have decreased country ranking to ‘BB+/B’ and removes it from CreditWatch negative. Citation from their official release:

“We believe the necessary process of private sector deleveraging is likely to continue over several years, during which time real incomes will decline, testing Latvia’s commitment to both its exchange rate regime and its obligations under the EUR7.5 billion assistance program from the IMF, EU, and other official lenders. The adjustment is made more difficult as external demand for Latvia’s key exports continues to decline.”

Let’s hope that this situation will not go any worse..

Bail-out approval from International Monetary Fund

On December 24 IMF agreed on the planned help to Latvia to overcome economical crisis that arrived by December, although majority of economists are worried about the future government steps. Prime minister Ivars Godmanis decided to keep the currency rate to Euro and cut the employees’ wages. More on the topic here at BBC.

Prime Minister Godmanis offered resignation as well, “if it helps the country”. Nothing happened yet, we will see – some political commentators already started their analysis. In Lithuania demonstrants decided to use eggs

Riots and demonstrations

Cutting wages in a very unpopular way how to manage problems. Majority of local citizens decided to repeat this information during a demonstration in Riga with about 10 000 people gathered at the Dome Square. Unfortunately this escaled into riots and fight with police, leaving about 40 injured. (BBC story here)

Further actions were cancelled, president Valdis Zatlers warned the Parliament and asked for earlier popular elections and two more constitutional changes. Parliament now has time until March 31. (full article here)

Language and nationalism quarrels

In these unstable times another question remained unanswered – the position of minorities in the country, especially the Russian speaking. According to surveys, about 400 000 people living in Latvia are called “non-residents”, they do not hold Latvian passport as exam from Latvian language is compulsory step towards obtaining it. More tension appears as Latvian nationalists in the Parliament turned down the notion that would enable non-residents take part in municipal elections. (article 1, article 2, article 3)

Minister of Culture Helena Demakova resigns due to health problems. Maybe the inability to respond to a argue over a commemoration plaque of Mussolini and Veiss could be reasons to speed up the decision.

Solutions for economical problems? Let somebody buy us!

Several attempts were made to offer Latvia for sale in internet auction servers as eBay or by online petitions. One of the groups appealed Russian multi-billionaire Roman Abramovich, some others asked the country of Sweden.

At the beginning a lot of friends told me there is no reason to open a bank account in Latvia since all shops, major cafés and pubs accept cards. However, you still need some coins and/or banknotes for bus tickets or magazines (soon to be changed as well). I got an information that my scholarship will be given only in EUR which automatically took my Czech accounts out of play – they are in CZK and comission is imbursed for transfer from EUR.

I wanted to put my money into one of international banks (Latvian private bank Parex was taken over by state two weeks ago due to possibility of insolvency) so I went to local Swedbank branch. It took me 14 minutes to wait in queue and 16 minutes to have my account open. Altogether 7 signatures were needed (including a 3-page survey because I am considered non-resident). And what did I get?

• multi-currency account
• internet banking working immediately
• debit card, in 2 days (!), first year for free, then for 14 EUR
• possibility to have ISIC card with chip to serve as payment card also
• withdrawals in local currency for free even if I don’t have LVL
• same with payment in shops

I was very positively surprised by the speed of the card issuing and short time needed for opening the account itself, even without any online registration in advance. I can fully support choosing this bank for local keeping your money during stay in Latvia.

UPDATE 29.11.08: I got my payment card today, it’s embossed and obviously it is possible to pay through internet. Easy..

1. Economy: Before addition of Romania and Bulgaria, Latvia had the lowest average salary in the EU despite its increase around 20-30% every year over past 3 years and is a member of EMR II. However, the average salary is still only 490 LVL (=700 EUR) and inflation rate is rising to some 16%. EDIT: (link)
2. Demography: The population density in Latvia is 36 inhabitants per square km, which makes it at about the same level as Cameroon, Colombia or South Africa. EU-27 average is 112. (link)
3. History: Just like Czech Republic and Slovakia celebrating independence of country that no longer exists, Latvia celebrates its independence from the year 1918, even though they were occupied by Germany and Soviet Union and became a separate country again in 1991. (link)
4. History: Since Soviets invaded Latvia in 1941, groups of Latvians were fighting them together with Nazis and even built several monuments. Even though there was one of death camps built in Salaspils, near Riga, which is obviously not appreciated both by those who survived them and the EU. (link)
5. Sports: Latvia has gained 17 olympic medals including two golds even though its short existence as independent state. The most recent is from newly introduced men’s BMX cycling race won by Maris Štrombergs. (link)
6. Demography: In the years 2004 to 2007, about 25.000 Latvian working-age inhabitants left for Ireland and 35.000 for UK. That leaves Latvia with second highest emigration rate among countries that joined EU in 2004, around 2,5%. EDIT: (link)
7. Economy: Latvian currency lat is one of the strongest in the world, since its exchange rate is 1 EUR = 0,705 LVL. (link)

International airport code: RIX
Major operating flight companies: airBaltic, EasyJet, Ryanair, Czech Airlines/click4sky
Webpage: www.riga-airport.com

There is a direct bus No. 22 between the airport and city center, you should get off at the bus stop “Stockmann centrs”. The ticket costs 0,40 LVL and you can buy it directly on the bus from the conductor, which may also ask you for additional charge for your luggage, 0,80 LVL.

If you take bus 22a, it has different final stop – Esplanade. Prices are the same.

City transportation system

Riga is operated by buses, trams and trolleybuses. The tickets can be used only once, in news stands you may only buy tickets for trams and trolleybuses and then validate them in the vehicle. In buses there are conductors. A new system of electronic tickets/cards is being introduced, it will be used from March 1, 2009.

More information can be found at the Riga Transport (Rigas Satiksme) webpage: www.rigassatiksme.lv

Trains and inter-city buses

They both leave from terminal stations in the centre of the city, not far from each other and the “Stockmann centrs”. Trains are fairly cheap, 1-hour passenger train ride costs slightly above 1 LVL. Long-distance buses are more comfortable, but also more expensive. For example Ventspils – Riga is 4 hours by bus and costs 5,5 LVL.

Timetables and prices can be found at 1188.lv webpage: trains or buses

Car rentals

Renting a car is at reasonable prices compared to other countries. You can have your passenger car from 20 LVL/day. Just look at several companies and make a short search, majority of them speak English well.

Google query here.

Since the 18th century all of what is now Latvia, Estonia and most of Lithuania were part of the Russian Empire. Before the end of the First World War, the Empire had collapsed and in 1918 Riga, Vilnius and Tallinn proclaimed their independence, but this independence was short-lived.

In 1940, after a pact between Stalin and Hitler, the Baltic States entered the Soviet Union. Nazi forces pushed the Soviets back in 1941 but the Red Army returned in 1944 to make the countries part of the USSR once again. Its independence was reestablished only with the collapse of the Soviet Union.

So, despite the fact that in relation to Russia, Latvia calls itself a republic with a 90 year history, there are essentially no documented facts to prove this.

As historian Vladimir Simindey points out, “Russia recognized Latvia’s independence after the collapse of the USSR just like it did with all the other former Soviet republics“.

Even whilst taking into account current affirmations that Latvia retained its independence throughout the years of Moscow rule, on paper it officially held the status of a Soviet republic.

Since the collapse of the USSR Latvia, Estonia and Lithuania went from Communism to NATO and EU membership. Now, they are keen to break away from their Soviet past. The Museum of Occupation in Riga makes little difference between Nazi occupation during WW2 and Latvia’s years within the USSR and grudges over history continue to poison Latvia’s relations with Moscow.

Latvian language belongs to the group of Baltic languages which developed directly from an old Indo-European language, thus it does not belong to Slavic or any other European language group. There are only two live languages nowadays – Latvian and Lithuanian, the rest of them have gone extinct. The first notable evidence is from the time around 10th century, however first known official source dates to 1530. The alphabet is Latin, with several specific letters which may remind of Western Slavic group (Czech, Slovak, Slovenian etc).

Recently the number of people having Latvian as mother tongue has reached 1,5 million in Latvia and 0,5 million abroad, some 0,5 million more have Latvian as second language – these people are of (mostly) Russian or other origin living in Latvia. Several primary school for minorities have been established, because from 1999 Latvian is the only official language in the country and students may study for free in public universities if only the education is given in Latvian. Ministry of Justice is running even a State Language Centre which supervises the use of the language in public areas or institutions.

Due to influence of German (from Prussian times, around 18th century) and Russian (after World War II) there is a visible reminiscence of these language in current Latvian, however there is a strong feeling for language purism. In 19th and 20th century several “updates” and “upgrades” for the language have been set and accepted, namely ortographic and grammar part. During the times under Russian rule (first the tsar, then Soviets) some groups proposed usage of Cyrilic alphabet, but this movement was not received positively.

Here are some examples:

Good evening! – Labvakar!
See you later! – Uz redzēšanos!
railway – dzelzceļš
4, 5, 6 – četri, pieci, seši
cafeteria – kafetērija or kafejnica
library – bibliotēka
office – birojs
swimming pool – baseins
bread – maize
chicken – vista

Links to read if you want to know more: Latvian language, Baltic languages, EN-LV dictionary.

My questions concerned possible frozen sea during the winter, lowest January temperatures and common amount of snow in the city. Beginning of September was very sunny and I thought of nice trips into the countryside. However, things changed quite rapidly.

Everyday locals talk about terrible cold which is not common for this time of the year. I can handle low temperatures well, but I was not prepared for the fact that I will have the same cold air will be in our flat. The heating is not working yet as this is a decision of the government. Official news are that heating season starts if temperature does not rise above 8 C for three consecutive days. Usually this occasion comes in the second half of October. What surprised me more, local people are afraid of beginning of heating season. Reason? Prices were increased by 30% compared to last year.

Having cold flat is good for your fruit or vegetables because it has no possibility to rot in these conditions. The bad thing is that you become vegetable as well.

Today I wanted to buy a thermometer and start regular measurements. However, in 3 shops that I visited, there was no such thing as this. But I was told these things are available only through specialized shops, so I need to search more. Or perhaps go to outdoor shop and buy a sleeping bag..

My name is Premek, I come from the Czech Republic and I am studying International Business here in Riga since September 2008. I am 25, this is my final year at the university and so I decided to have it a little special..

So why Riga?

Usually there is a plenty of reasons why you do a certain activity. As several people asked me this question in past weeks over the time I’ve come up with some answers:

1. For a long time I was thinking of going to the Baltics because of its natural beauty, old architecture and castles from medieval age and also cold weather.
2. I met some Latvians 3 years ago, we talked a lot about the country and I just wanted to visit them.
3. RSEBAA (the school where I study now) just recently signed an agreement with my university and thus I supposed only few people would for this school.
4. One of my friends, Lucka, has studied here 2 years ago and this meant that I will not go into completely unknown place and I will be able to have some connections even before my arrival.

Things went well and last week I left Prague for another capital, this time a lot far north..