IP/08/1897
Brussels, 7 December 2008
Statement updating on the EU financial
assistance mission to Latvia
Following the statement by the European Commission and the EU Presidency on
Latvia on November 21, 2008 (see press release IP/08/1756), good progress has
been made towards a possible EU-supported program for the country.
In cooperation with the International Monetary Fund, some individual
European governments and regional and other multilateral institutions, we are
working with the authorities on the design of a program that maintains Latvia's
current exchange rate parity and band.
This will require agreement on exceptionally strong domestic adjustment
policies and sizeable external financing, as well as broad political consensus
in Latvia. In this context, we welcome the commitment made today by the Latvian
authorities.
All participants are working to bring these program discussions to a rapid
conclusion.
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