Deutsche financing scheme for Riga left Latvia with $1 billion debt and reporting headache

riga-bridge

When the Latvian government told Riga it couldn't borrow the equivalent of $1 billion to build a bridge over the river Daugava in 2005, Deutsche Bank stepped in. Its solution – enhanced vendor financing (EVF) – would provide the money in a series of payments, allow the city a five-year grace period before repayments start this year and not need to be reported as debt, the bank claimed. The downside was the expense: 46% of the total 567 million lati bill for the bridge was interest.

Riga went ahe