Brussels, 21 October 2010
Commission makes a €0.2 billion disbursement as part of the Balance of Payments support to Latvia
The EU disbursed today the fourth instalment of the €3.1 billion EU loan to Latvia, which was agreed in January 2009 as part of a €7.5 billion multilateral financial assistance package. This follows a positive assessment by the European Commission of the implementation by the authorities of the economic conditions attached to this disbursement.
"The financial assistance provided by the EU, the IMF and other international financial institutions helps Latvia undertake difficult fiscal measures and important structural reforms which were and are necessary for the Latvian people to overcome the economic and financial crisis," said Economic and Monetary Affairs Commissioner Olli Rehn. "I welcome the renewed commitment of the Latvian authorities – reconfirmed in the Supplemental Memorandum of Understanding (SMoU) signed on 20 July 2010 - to continue implementing actions necessary to build a strong and competitive economy."
The SMoU includes commitments, e.g. on the budgetary consolidation, on the fiscal adjustment for 2011-2012, and specific economic conditions as regards fiscal governance reform, financial sector and structural reforms (tackling gray economy, improving business environment, attracting investment, fostering EU funds absorption, making public procurement more transparent, improving public administration performance, reviewing state-owned companies, etc).
For more information see the link to the webpage on the Balance-of-Payment assistance for Latvia: