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Latvia cuts budget

Aug 05, 1999
By Diana Kudayarova

RIGA - Although the government managed to cut its expenditures by 64.4 million lats ($109.15 million), the fiscal budget deficit is still 3.5 percent of GDP, which exceeds the maximum of 1 percent strongly recommended by the International Monetary Fund, and goes well beyond the deficit the government hoped for.The deficit is large enough for Latvia's agreement with the IMF to be under threat, warned Finance Minister Edmunds Krastins. It can also provoke suspicions about the stability of the Latv ...

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