The package represents about a third of the country’s gross domestic product, much larger in relative terms than the earlier bail-out of Hungary, reflecting the size of Latvia’s macro-economic imbalances following a credit binge on EU accession in 2004.

The European Union will contribute €3.1bn $4.3bn, £2.9bn, the IMF €1.7bn, Nordic countries €1.8bn, with €400m coming from the World Bank and another €500m from the Czech Republic, Poland, Estonia and the European Bank for Reconstruction and Development.

The big contribution from Nordic countries reflects their long-standing ties with the Baltic region and their huge investment there, not least in the banking sector.

via / Brussels – Lativa to receive €7.5bn in financial aid.