Islamophobia threatens global peace and coexistence, not just Muslims, says MWL chief at UN    Power bank likely caused South Korea plane fire, investigators say    Gold prices hit $3,000 for the first time as investors push the panic button    Hungary drops veto and agrees to prolong EU sanctions on Russian individuals    China hits out at 'threats of force' on Iran as Trump pushes for new nuclear deal    Makkah Lanterns Festival returns for the eighth year as part of Ramadan activities    Crown Prince receives Yazeed Al-Rajhi after historic Dakar Rally 2025 victory    SR17 million fines slapped on 16 individuals and companies convicted of violating Capital Market Law    Saudi Arabia welcomes border agreement between Tajikistan and Kyrgyzstan    Saudi ambassadors take oath before Crown Prince    16 endangered species released into AlUla's Protected Areas    Saudi Crown Prince reaffirms support for a political solution to Ukraine crisis in call with Putin Putin praises Saudi Arabia's constructive role and mediation efforts    NCM forecast: Thunderstorms to hit most Saudi regions until Monday    Saleh Al-Shehri's late penalty rescues Al Ittihad against Al Riyadh    Grand Mufti rules against posting prayers and preaching in mosques on social media    Man lives for 100 days with titanium heart in successful new trial    Argentinian court begins trial of seven healthcare professionals over Maradona's death    Al Hilal crushes Pakhtakor to storm into AFC Champions League quarter-finals    Singer Wheesung who wooed Korea with his ballads, found dead at 43    Prince Frederik of Luxembourg dies from rare disease    Real-life shipwreck story wins major book award    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Order vs. Morality: Lessons from New York's 1977 Blackout    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Latvia faces "incredibly tough" year, says IMF
Published in Saudi Press Agency on 28 - 05 - 2009

Latvia, which is currently experiencing the European Union's harshest economic recession, faces an "incredibly tough" 2009, dpa quoted representatives of the International Monetary Fund (IMF) as saying today.
On the same day that an IMF mission held talks with Latvian Prime
Minister Valdis Dombrovskis in Riga as it begins to assess progress
introducing hard-hitting reforms and budget cuts, the organization
published an interview in its "IMF Survey" with mission chief Mark
Griffith and regional director Christoph Rosenberg in which they
warned that even tougher times were ahead for the embattled Baltic
state.
"2009 will be an incredibly tough year. Latvia will need
substantial assistance from the international community to ease the
social costs of the crisis," Griffith said.
Rosenberg said Latvia had been "on the IMF's radar screen" for a
long time and that as far back as 2005, the IMF had warned publicly
that the economy was in danger of overheating.
Those warnings went largely unheeded as Latvia rode a wave of easy
credit, rapidly rising wages and huge gains in real estate prices.
But last year the property bubble burst, credit dried up and the
government was forced to bailout local bank Parex, sending Latvia to
the edge of bankruptcy.
"Output fell by an estimated 18 percent year on year in the first
quarter of 2009, and could fall by a similar amount for the year as a
whole," said Rosenberg, who denied the IMF was to blame for the
widespread lay-offs, wage cuts and closures that are affecting
thousands of ordinary people.
"The budget choices facing Latvia today are extremely difficult.
But it's also important to remember that without assistance from the
EU, the IMF, and other partners, Latvia wouldn't have been able to
run a budget deficit at all. It might even have had to run a surplus,
in which case the adjustment would have been much, much harsher than
it already is," Rosenberg said.
In December 2008 the IMF brokered a 7.5-billion euro (10 billion
dollar) economic assistance package to Latvia with money also coming
from the EU, World Bank and countries such as Sweden which have big
stakes in the Latvian banking sector.
However, Latvia has already missed out on one payment of 200
million euros after reforms were deemed to be moving too slowly.
The latest IMF mission will recommend whether or not Latvia
receives the next 200 million euro tranche.
Budget proposals drawn up by the government allow for a deficit of
up to 7 per cent of GDP, despite the fact that the terms of the
economic assistance package require Latvia to limit its deficit to a
maximum 5 per cent of GDP.
Prime Minister Dombrovskis is hopeful that lenders will loosen the
requirement in the wake of worsening economic data.
The IMF mission will conclude its visit to Latvia on June 5.


Clic here to read the story from its source.