Riga- Authorities in Latvia have launched a novel incentive scheme for police in a bid to tackle the annual scourge of burning grass.

Officers who apprehend a fire starter will be entitled to an extra day's paid holiday, Interior Minister Linda Murniece told reporters Thursday.

"We are unable to pay bonuses, but we have promised a paid day off in addition to the holiday allowance for each officer who catches a burner of old grass," the minister said.

Riga  - Ratings agency Fitch slapped a fresh round of downgrades on banks in the Baltic states Thursday in the wake of its downgrade of the entire region a day earlier.

The Latvian subsidiaries of Swedish banks SEB and Swedbank saw their Support Ratings downgraded to '2' from '1'.

Riga  - Annual inflation in Latvia dipped from 9.6 per cent in February to 8.2 per cent in March, according to figures released Wednesday by the Latvian national statistics office.

Despite the drop Latvia retains the highest inflation rate in the European Union, hampering efforts by the government of Valdis Dombrovskis to balance the books in the recession-hit Baltic state where GDP is expected to contract by 13 per cent in 2009.

Riga - The European Bank of Reconstruction and Development (EBRD) confirmed Tuesday that it will buy a quarter stake in nationalised Latvian bank Parex.

The EBRD said it would acquire "25 per cent plus 1" of ordinary shares of Parex Bank for 84.2 million euros (111 million dollars) and extend a "subordinated loan" of 22 million euros (29 million dollars).

In the statement, the EBRD said the deal was subject to "the conclusion of legal documentation."

Riga - European Energy Commissioner Andris Piebalgs said Monday that a decision on whether the so-called Swedlink power cable joining Sweden and the Baltic states would go to Latvia or Lithuania could only be made after expert reports are delivered in July.

Speaking before delivering a presentation at an EU energy conference in the Latvian capital, Riga, Piebalgs told the German Press Service dpa that the route could not be finalized until technical reports have been submitted.

Riga  - The Baltic states of Latvia and Lithuania on Thursday saw fresh demonstrations from workers affected by the sharp regional economic downturn and subsequent hard-hitting government spending cuts.

Teachers led the way in the Latvian capital, Riga, with around 8,000 arriving from across the country to stage a protest march in favour of better pay and working conditions and against cuts in education spending.

The numbers participating were larger than expected, causing several streets to be closed.