EU – Baltic States, Financial Services, Latvia, Loan

International Internet Magazine. Baltic States news & analytics Thursday, 04.06.2020, 06:59

Conditions from IMF to Latvia are “harder” than from European Commission

Nina Kolyako, BC, Riga, 15.07.2009.Print version
The talks with the International Monetary Fund have been rather difficult so far, as Prime Minister Valdis Dombrovskis (New Era) said in an interview with the Latvian State Radio this morning.

Latvia and the IMF are trying to reach agreement on preconditions for the IMF loan to Latvia. The IMF is demanding Latvia to do more than the European Commission wants Latvia to do, and the conditions set by the IMF are "quite hard", said Dombrovskis, adding though that he cannot yet reveal what the IMF conditions are.


According to what Dombrovskis said, the IMF wants Latvia to define how it will achieve a growth in revenue, but the approach of the IMF is mathematical, for instance, increasing the value-added tax has been suggested.


LETA has received information that both sides must reach agreement by Friday, July 17, when the IMF mission are scheduled to depart. If a new memorandum of understanding is not signed by then, Latvia will not receive further IMF aid.


In this case, receiving loans from other international lenders will also be threatened.


The IMF has set several conditions for Latvia, which are difficult for Latvia to meet and this makes the talks very difficult.


Dombrovskis had a meeting with the visiting IMF representatives today, but neither side has commented on the results of the meeting yet. Dombrovskis will comment on Friday, as the premier's press secretary Liga Krapane told LETA.

Search site