International lenders still wary

  • 2009-07-21
  • TBT staff

Finance Minister Repse said that lenders are still not confident in Latvia

RIGA- Einars Repse, Latvia'sFinance Minister, announced that international lender do not trust Latvia, referringto the talks with the International Monetary Fund.Monetary Fund.

According to Repse, the international donors still do not believe that Latvia "isable to rein in the budget deficit, which is getting worse as the economicsituation declines."

There is also little confidence that Latviawill be able to reduce the budget deficit in the next few years.

The government and the IMF are currently putting the finishing touches on aletter of intent, whose conditions will be similar to those described in thememorandum signed with the European Commission. "However, we can say whetherthere are any innovative provisions in it only after the talks are over," saidthe Finance Minister

"The work on the letter of intent continues," said Repse.

As reported by LETA, an IMF technical assistance mission continues visit to Latviathis week, and it will be clear after the visit is over whether Latviawill receive the next installment of the IMF loan.