Estonia, EU – Baltic States, Financial Services, Latvia

As Estonia's Foreign Minister Urmas Paet said in an interview to LETA, his country still has the previously accumulated financial resources and reserves, Estonia also plans to curb its budget spending and it will provide part of the international financial loan to Latvia as agreed.

The Estonian foreign leader could not comment on decisions at the national level that Estonia still has to adopt before resources for the loan are allocated.

As Paet informed, today the government of Estonia will gather for an emergency meeting to pass a decision on curbing state budget expenses. Later, the Estonian parliament will review the government's proposals.

Paet points out that the latest economic trends are not all bad news, he underlines that reduction of inflation rate has helped Estonia to move closer to meeting the Maastricht Criteria for introduction of euro. Now Estonia's principal aim is to retain a balanced budget.

As reported, yesterday, on February 17, the lower house of the Czech Parliament approved a loan of EUR 200 million (LVL 140 million) to help Latvia. The bill still must be approved by the senate before it can take effect. The loan will be provided for a period of seven years.

As reported, the total amount of financial aid to Latvia from international donors is EUR 7.5 billion (LVL 5.25 billion).

The European Commission will allot EUR 2.9 billion in 2009 (LVL 2.03 billion), EUR 100 million (LVL 70 million) in 2010 and another EUR 100 million in 2011.

The International Monetary Fund will give Latvia EUR 1.2 billion (LVL 0.84 billion) this year, EUR 400 million (LVL 280 million) in 2010 and EUR 100 million in 2011.

The Nordic countries – Denmark, Sweden, Finland and Norway will allot EUR 1.8 billion (LVL 1.26 billion) to Latvia in 2010.

The World Bank will allocate EUR 200 million (LVL 140 million) to Latvia in 2009, and EUR 200 million in 2011.

The European Bank for Reconstruction and Development, the Czech Republic, Poland and Estonia will allocate EUR 200 million to Latvia in 2009, and EUR 300 million (LVL 210 million) in 2010.