First results on budget negotiations reached

RIGA - On Thursday, Nov. 3, Prime Minister Valdis Dombrovskis held a meeting with the representatives of the Review Mission of the International Monetary Fund (IMF) and the European Commission. The main task in negotiations with international lenders was to agree on the 2012 budget and the amount of fiscal consolidation. According to Dombrovskis, first agreements have already been reached.

A final agreement has been nailed down on the macroeconomic development scenario for next year, which projects for a 2.5 percent gross domestic product growth, 2.4 percent inflation and a budget deficit of under 2.5 percent of GDP in 2012.

Almost all the necessary agreements have been reached regarding budget revenue; now the only question to be decided is budget revenue from speed cameras, which will be discussed separately.

In the coming days, possible budget consolidation scenarios will also be considered, and the government will debate these scenarios already today.

Head of the International Monetary Fund Mission in Latvia Mark Griffith told reporters that the talks were proceeding successfully, and could conclude with positive results next week.