5 lats coin coins were never minted as the Second World War broke out. After the Soviet occupation of Latvia in 1940, lats continued to circulate alongside the Soviet ruble, although silver coins had largely disappeared from circulation. (Even prior to the war, Latvian people had started to hoard silver coins to prepare for the imminent crisis.) On 25 March 1941, all denominations of lats were abruptly annulled. As the general society was given no prior warning, an estimated 50 million lats were never exchanged for rubles. The people were left with suddenly-worthless coins and bills, except for sentimental value and the silver
Baltic states housing bubble to housing bubble in the Baltic states. Another direct outcome from the "cheap" credit abroad guided the banks to engage in imprudent lending supported by its parent banks. As the interest rate has been free-falling in the Baltic states, the real interest rate on deposit has been dwindling. Throughout the housing bubble period in the Baltic states, the deposit to loans ratio continued to widened – far higher than the entire Euro Area. For that reason, banks in the Baltic states have to borrow abroad heavily denominated in Euros before passing the currency risk to potential customers. As such move