Banks, EU – Baltic States, Financial Services, Latvia

Valdis Dombrovskis and Angela Merkel.

The German banking sector representatives praised the work of Dombrovskis' government in reducing the budget spending, launching structural reforms and continuing stabilization of the banking sector in Latvia.

The German banks have a lasting interest in the Latvian and the Baltic markets, the German financial sector representatives stressed. They expressed unanimous support for the stability of the lat, and Dombrovskis informed them that devaluing the lat is not even being considered in Latvia.

The German bankers praised Latvia as an investment-friendly country, emphasizing the qualifications of the Latvian labor force. They said that Latvia is expected to be one of the first countries in Europe to exit the current economic crisis, thanks to the government's resolve and Latvia's favorable geographical position.

Dombrovskis informed the German financial sector representatives about Latvia's cooperation with the International Monetary Fund and the European Commission. He said that talks continue about the permissible budget deficit level, and the government will continue work on budget amendments.

Dombrovskis also informed about the planned structural reforms in the health care and education sectors and the situation at Parex banka, stressing that the agreement signed with the European Bank for Reconstruction and Development is a step toward stabilization of both Parex banka and the financial situation in Latvia.

Also was discussed the social situation in Latvia.

Representatives of the Association of German Banks, Deutsche Bank, Landesbank Berlin AG, Alianz SE, Global Banking, KfW, Commerzbank AG, UniCredit Group HypoVereins Bank and others participated in the meeting with Dombrovskis.

Also yesterday Valdis Dombrivskis met with Angela Merkel.