Budget, EU – Baltic States, Financial Services, Latvia

Today the government coalition parties have a meeting with representatives from the International Monetary Fund to discuss current developments in Latvia, informs LETA.

As reported, Prime Minister Valdis Dombrovskis (New Era) commented to reporters yesterday after a ruling coalition meeting that the new agreement with the IMF, that will be necessary in order to receive the next borrowed installment, will have no significant alterations.

The program sets specific budget deficit goals that Latvian has promised to reach – 6% of GDP in 2011 and 3% in 2012. But – in order to avoid any redundant interpretations, there will be no talk of specific numbers or amounts in reducing the deficit.

Dombrovskis underlined that Latvia will not assume any other obligations as far as raising taxes are concerned, but, just as in the prior agreement, the possibility is left open for higher VAT.

The letter of intent with IMF is confidential, however, the prime minister did reveal that it contains the main directions for structural reforms both in government and simplification of the administration of EU funds. Support for business activity may be made more specific, he said.