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Important to show that crisis has passed - Rimsevics

Gleb Vasiljev, BC, Riga, 13.07.2012.Print version
It is important for the government to show that the crisis has passed, however, it must not be considered that the time has come to relax and spend, Bank of Latvia President Ilmars Rimsevics told reporters yesterday.

Rimsevics admitted that the government is currently in a difficult situation. The crisis is over, but people do not experience considerable improvements in their everyday lives.

Therefore it is vital for the Cabinet to show that that the crisis has ended. The decision to reduce taxes was the first step in this direction, said Rimsevics.

Commenting the government's plans to amend this year's budget, Rimsevics noted that the government at least attempts to allocate a part of surplus revenue to those sectors and ministries that need it the most.

However, Rimsevics emphasized that it must not be perceived that the time has come to lay back and spend, since Latvia is still living above its means.

Latvia's budget is still not balanced, emphasized Rinkevics, but lauded the government's efforts in reducing the budget, since the European Union's growth in the second half of 2012 and at the start of 2013 remains uncertain. Nevertheless, the recent summit of EU leaders brought hope and showed that all countries - Italy, France and Spain - are accepting consolidation measures. Thus the situation stabilizes, informs LETA

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