Baltic States – CIS, Financial Services, Latvia, Markets and Companies, Transport

According to Rimsevics, it is possible to draw up "all kinds of scenarios", however, paraphrasing French President Jacques Chirac's statement from another context, it would be necessary to "keep quiet for a while." Initial estimations after Russia introduced its sanctions, indicated that their impact is not that severe, nevertheless, Latvia "ought to save up some reserve funds, as the budget deficit cannot be increased any further," he said.

Rimsevics said that it is pointless to discuss reduction of value-added tax (VAT), as it will create a gap in the state budget and diminish the chances to render support for the companies affected by the sanctions, also fight African swine fever and funding for other significant matters.

"If the reduction of VAT was an actual solution, the government would have already implemented it," Rimsevics said, urging people to listen to the opinions of experts who oppose the reduction of VAT.

There is no crisis in Latvia at the moment, so there is no reason to "open" the budget and "live beyond our means," Rimsevics said. He believes that the finance minister has been prudent with state funds, therefore, the state has a sufficient amount of money to implement support measures.