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The article reports on the €3 billion borrowed by the Central Bank of Sweden from the European Central Bank. It states that the bank is concerned of its exposure to a devaluation of Latvia's currency. Economic and Monetary Affairs Commissioner Joaquin Almunia of the European Union (EU) claimed that the bloc aims to avoid a devaluation of the lat which is pegged to the euro.

The article reports an escalation of the financial crisis in Latvia after a government auction to sell 50 million lats of short-term debt failed to attract any bidders. The lack of any bidders has added pressure on the government to devalue its currency and affected the prices of other Eastern European currencies. According to Latvian Prime Minister Valdis Dombrovskis, the country needs to reach a quick agreement with the International Monetary Fund and the European Union to secure a loan.

The article states that the economic crisis facing Latvia has confirmed economic weakness across Europe as of October 2009. The European Commission has warned nine nations, including Germany and Italy, about their growing budget deficits. Countries are required to maintain deficits below 3% of gross domestic product (GDP), under the rules set by the European Union (EU). It notes the difficulty faced by Latvia in making budget cuts for months.