590 million euro delivered to Latvia

  • 2008-12-30
  • TBT staff
RIGA-Latvia received 589.57 million eurofrom the IMF as the first part of their multi billion euro loan.

Against the usual IMF regulations, Latvia is due to begin repayment ofthe loan in 2012 as opposed to 2011.

The maximum interest on this first set of funds is 3.87 percent according tothe Finance Ministry.  

However both the interest and the loan repayment period may change according tothe Latvian currency reserves and financial situation. The loan is foreseen tobe repaid in eight separate payments.

According to the Finance Ministry, the first loan will go for the 2009budget execution as well as debt refinancing for state incurred debts.

In total, Latviais to receive 1.68 billion euro from the IMF in ten separate installments, thebulk of which will come in 2009.  

The IMF together with several EU nations and the EC and World Bank aresupplying Latviawith 7.5 billion euro in total. Details on the repayment terms were signed onDec 23.