RIGA - Latvia could repay its international bail-out loans sooner than expected, Finance Minister Andris Vilks (Unity) told the LNT morning show ‘900 sekundes’ today, reports Nozare.lv. Latvia’s gross domestic product has reached the level of 2007 and will exceed it next year, said Vilks. Therefore, the country could begin repaying its international loan installments sooner.
Asked about potentially lower interest rates, the minister pointed out that this would send a positive signal to credit rating agencies and the State Treasury would not have to keep money in reserve.
On Dec. 21, 2011, Latvia officially concluded its three-year international loan program, during which the country implemented stringent austerity measures to stabilize its finances after the economic downturn.
The planned amount of the international loan program was 7.5 billion euros. But since the economic and financial situation has improved, Latvia did not use the full amount of the loan. The country got by with 4.4 billion euros. Latvia has to repay the loan by 2025.