There is enough money to deal with economic impact of Covid-19 pandemic - PM Karins

  • 2020-03-26
  • LETA/TBT Staff

RIGA - There is enough money to deal with the Covid-19 pandemic's impact on the economy, and cutting the public administration payroll is not being considered right now, Prime Minister Krisjanis Karins (New Unity) told journalists after an extraordinary Cabinet meeting on Thursday. 

Commenting on the Bank of Latvia's forecast about a looming GDP contraction in 2020, Karins said that central banks and analysts had projected the economy to decrease already earlier.

The prime minister said that the total value of funds available to Latvia for combating the negative effects of the Covid-19 pandemic is close to EUR 3 billion. "We have enough money and we can ensure an increased cash flow also in the future," Karins said. 

Asked if the government could consider cutting salaries and bonuses for public administration employees, Karins said that such a measure has not been proposed yet but if such an option is proposed it will be considered. 

As reported, the government on Thursday approved a regulation on on Covid-19-affected businesses, drafted by the Economics Ministry. According to these regulations, employees in all sectors and branches of the economy will be eligible for downtime pay, provided that they meet certain criteria.