Brussels, 11 March 2010
Commission makes a €0.5 billion disbursement as part of the Balance of Payments support to Latvia
The EU disbursed today the third instalment of a €3.1 billion Community 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 Commission of the implementation by the authorities of the economic conditions attached to this disbursement.
"I am glad that Latvia has complied with the policy conditions for the third EU disbursement. The financial assistance provided by the EU, the IMF and other international financial institutions helps Latvia undertake the 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 continued commitment of the Latvian authorities – reconfirmed in the Supplemental Memorandum of Understanding (SMoU) signed on 22 February 2010 - to continue on the path of consolidation and reform which provides the basis for a sustainable recovery. In this regard, the Commission, in close cooperation with the IMF, will be monitoring the implementation of the SMoU."
The SMoU includes continuous commitments, e.g. on the fiscal adjustment for 2011-2012 in line with what specified in the Council recommendation under the excessive deficit procedure in July 2009, and specific economic conditions as regards fiscal consolidation, fiscal governance reform, financial sector and structural reforms. With the aim of making the SMoU more operational, specific deadlines have been attached to meeting its conditions. The EC and IMF have worked closely with the Latvian authorities to ensure that the new SMoU and the Letter of Intent addressed to the IMF are fully consistent.
For more information see the link to the webpage on the Balance-of-Payment assistance for Latvia