Latvia sees problems meeting euro criteria by 2008

Latvia's central bank governor has said the Baltic state is unlikely to meet all the EU's economic convergence criteria for adopting the euro in 2008.

Ilmars Rimsevics said the rule on limiting inflation was of particular concern.

'The convergence report indicates to a certain extent that Maastricht criteria will not be met, specifically the inflation requirement, and this means Latvia might not qualify for the transition to the euro,' Rimsevics said.

'Theoretically though, the government still