West to allocate 7.5 billion euro to Latvia

European Commission has claimed that a group of creditors has agreed to allocate 7.5 billion euro to Latvia. The country will be receiving the money during 27 months. Thus, creditors hope that Latvia will manage to keep the current Lat to euro exchange rate. The European Commission expects Latvia to preserve the 5% budget deficit and reduce it to 3% by 2011. The government also expects to conduct structure reforms and to reduce salaries mainly in the budget sphere. The IMF will allocate 1.7 billion euro, the European Union – 3.1. The other creditors are the World Bank, The European Bank for Reconstruction and Development, Scandinavian countries (Denmark, Norway, Sweden and Finland) and Poland, Czechia and Estonia. 

Novonews