Latvian Bailout Review Is Ratified by IMF Board, Ministry Says

[Ognir]

http://www.bloomberg.com/news/2011-05-2 ... -says.html

The International Monetary Fund's board confirmed the staff-level review of Latvia's 7.5 billion- euro ($10.6 billion) bailout program that will allow the country to draw additional funds, Latvia's Finance Ministry said.

Latvia has used about 4.4 billion euros of the money available from a group led by the European Commission and the IMF, the statement said. The country plans to borrow only 100 million euros from the World Bank before the program is completed at the end of this year.

Latvia doesn't need to extend the program as the global economic crisis is over and the country's public debt isn't an issue, the IMF mission chief for the country, Mark Griffiths, said April 15 after completing the review.

Latvia plans a budget deficit equal to 2.5 percent of gross domestic product next year, 1.9 percent in 2013 and 1.1 percent in 2014, according to a letter of intent that accompanied the program review, the Finance Ministry said.

To contact the reporter on this story: Aaron Eglitis in Riga at bpenz@bloomberg.net