IMF to grant Latvia loan tranche of 200 mln euros

10:59, 18 February 2010

WASHINGTON. February 18. KAZINFORM The International Monetary Fund (IMF) is granting to Latvia a loan tranche worth 200.3 million euros (about 275 million US dollars). This decision was made on Wednesday on the results of the second review of the anti-crisis programme that Riga is fulfilling with the Fund's support. As a result, the total sum provided within the programme is to reach 1 billion euros (about 1.37 billion US dollars), Kazinform refers to Itar-Tass.

The Latvian economy is affected by a severe crisis. For its overcoming Riga attracts loans from international organisations, including the EU and IMF. However, the Fund provides money only on the condition of the fulfilment of coordinated conditions of the economic programme, including limiting the budget's social programmes. In the crisis conditions this entails major difficulties for Latvia.

According to an IMF press release, the Executive Board of the International Monetary Fund on February 17 completed the second review of Latvia's performance under an economic program supported by a Stand-By Arrangement (SBA). The Board decision enables the immediate disbursement of an amount equivalent to SDR 178.4 million (about 200.3 million euros or US$274.9 million), bringing total disbursements under the SBA to SDR 892.2 million (about 1.00 billion euros or US$1.37 billion), Kazinform cites Itar-Tass. See www.itar-tass.com

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