OREANDA-NEWS. April 30, 2008. Talk about an economic crisis in Latvia at the moment is exaggerated, according to newly-appointed Financial and Capital Market Commission Chief Irena Krumane, who spoke in an interview on the LNT TV morning newscast.

Krumane believes that the real situation is not in tune with the prognosis by the chairman of the board of the real estate company "Latio" Edgars Sins, who stated that approximately one-fifth of the households that have taken out housing loans or 40,000 families, could go bankrupt. Krumane pointed out that at the present moment, the number of "bad credits" is low, and thus there are no grounds for such assumptions.

In commenting on inflation, Krumane admitted that the latest prognosis of experts forecast a more notable decrease of inflation only next year. It is likely that this year the inflation rate will not fall significantly.

Krumane admitted that this is an unfavorable situation - residents and enterprises of Latvia will continue to live in expectation of inflation growth, therefore companies will not lessen the high prices.