Riga  - Latvia's four-party coalition government was teetering on the verge of collapse Monday after talks aimed at preventing industrial action by farmers broke down without agreement and serious differences between ministers became more evident.

Embattled prime minister Ivars Godmanis faces a parliamentary vote of no confidence on February 4 and the odds on him winning the ballot are shortening.

Tensions increased Monday after farmers' groups walked out of talks with Godmanis' government and said they would step up plans for demonstrations, starting with "wide-ranging action" on February 3.

Riga - Two former officers of Latvia's Corruption Prevention and Combatting Bureau (KNAB) were handed jail sentences Monday after being found guilty of stealing thousands of dollars in various currencies from the very agency that is supposed to lead the fight against organised crime.

Janis Imsa, former specialist in the KNAB confidentiality maintenance department, was been sentenced to seven years in jail, confiscation of property and a fine of 1,800 lats (EUR 2,561).

He had pleaded guilty to embezzlement for taking cash seized during raids in various currencies which totalled nearly 190,000 dollars.

Riga - The chief executive officer of the largest bank in Latvia has resigned according to a company statement released Monday, while attempts to stabilize the Baltic state's second-largest bank have cost more than 1.5 billion dollars, it has been confirmed.

"Maris Mancinskis will become the new Head of Swedbank in Latvia from February 12, 2009. He succeeds Maris Avotins, who resigns from his post and will continue his work for Swedbank Group, said a statement from Swedish-owned Swedbank, which operates in all three Baltic states and is particularly strong in Latvia.

Riga - The chairman of one of Latvia's leading drinks manufacturers said Thursday that a combination of increased duty on alcohol and the Baltic country's bleak economic outlook could drive drinkers to produce their own moonshine in illegal stills.

"Rapid excise tax and VAT rate increases will lead to rapid decreases in sales volumes. It does not mean that people will reduce their consumption of alcoholic drinks. This situation will favour the production of illegal alcohol," said Karlis Andersons, chairman of Latvijas Balzams, in a note to the Riga stock exchange.

Riga - The chairman of one of Latvia's leading drinks manufacturers said Thursday that a combination of increased duty on alcohol and the Baltic country's bleak economic outlook could drive drinkers to produce their own moonshine in illegal stills.

Riga - The prime ministers of Baltic neighbours Latvia and Lithuania said Monday they would send a joint letter to the European Commission calling on the EU to prioritise the construction of an energy link between the Baltic states and Sweden.