Financial Services, Latvia, Legislation, Pensioners

First of all, talks must be resumed with the international lenders on the national budget deficit, the premier said. Should they insist on a LVL 500 million cut in the budget, Latvia will not be able to avoid negative repercussions. "We have already spoken to the lenders, we await a response," he added.

Dombrovskis pointed out that if the talks with the lenders have a positive outcome, the government will have "maneuverability", informs LETA.

One negative repercussion could be higher taxes, he said.

Welfare Ministry Communications Department Chief Ilona Jursevska informed LETA that the ministry has already calculated the finances necessary to carry out CC's ruling.

If the full pension is to be paid out again as of February next year, than an additional LVL 110.9 million will be needed. In order to pay back the pension amount owed to retirees (for the period July 2009 to January 2010), LVL 73.7 million will be needed, Jursevska reported.

She added that at the beginning of next year, all entities involved will decide on specific action necessary to guarantee that the CC ruling is met.