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EIB hands Latvia massive loan

  • 2008-10-30
  • TBT Staff in cooperation with BNS

The Latvian finance minister said there was a possibility the country would have to borrow more in the future (Photo by Jeff Barnes)

RIGA 's Latvian Finance MinisterAtis Slakteris has signed an agreement with European Investment BankVice-President Eva Srejber granting the country a 500 million euro loan.

The Latvian Finance Ministry said it planned to use the loan for co-fundingof the EU fund projects during the 2007-13 planning period.

"At the time when the loan is taken, concern about future is presentamong the businesses. This loan is a good stimulus for the development ofbusiness as well," Slakteris said.

He said that it is intended to use the borrowed funds for the development ofbusiness, especially facilitating innovation. The borrowed funds could be usedfor personnel development and education, especially higher education, as wellas financing transport, communications and energy effectively projects.

The minister said that the loan was given with the best possible conditions.

"We will receive the first part of the loan worth 150 million euros andwhen all the reviews of its use are submitted to the bank, we will be able toattract the next part of the loan, choosing the condition," the ministersaid.

Slakteris also admitted that if the state expands its plans, it would beable to borrow more funds in addition to this loan.

The borrowing plan of the government for 2008 also provided for borrowing onthe international financial and capital market by issuing Eurobonds anddomestic borrowing by issuing debt securities.