RUSSIAN CASH WITHDRAWALS BEHIND BANK FAILURE IN LATVIA.

Massivewithdrawals of Russian funds from Latvia led to the collapse of theBaltija Bank, a Moscow paper said May 23. Delovoy mir said that Russiandepositors were angry about Latvia’s destruction of part of the Skrundaradar site and what it said were Riga’s anti-Russian policies. The factthat the funds were drawn out all at once suggests that there mighthave been some coordination by the Russian government itself. Thecollapse of the Baltija Bank continued to resonate in Riga. The Bank ofLatvia has agreed to loan the Latvian government $38.5 million thisyear to help with the bank crisis and the growing budget deficit butonly if the government adopts a tough balanced budget. The governmenthas agreed, but this step will cost it some support in the run-up tothis fall’s elections.

Second Round Voting In Belarus Falls Short.