"The criticism came as a government bond auction failed to attract buyers, and worries about the Latvian economy weighed on the currencies of Sweden -- whose banks are Latvia's major lenders -- and other countries."Full Article: Latvia's Woes Rise as Auction Fails (10/8/09)
"Latvia's struggle has continued for months and its current woes revived market speculation that the country could try to ease its troubles by devaluing its currency, the lat. Such a move could trigger devaluations in the region as Latvia's neighbors come under pressure from nervous markets, analysts said."
Hat tip: Across The Curve by way of Eco_Feed.