LTL: Euro Peg Remains Safe Despite Mounting Risks

The elevated risk of a banking sector crisis in Lithuania could present problems for the country's balance of payments position, in turn, making life difficult for the Lithuanian central bank in keeping its currency peg to the euro in place. Risks of the eurozone sovereign debt crisis spiralling out of control in the near future make for a difficult environment in which the Lithuanian government will be forced to tap capital markets to meet its borrowing requirements.

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