Latvia has declined to take up a fresh installment of the European Union-International Monetary Fund bailout it secured two and a half years ago, because of its strong economic recovery, dpa cited the EU executive as saying Wednesday. The EU and IMF were ready to give up to 100 million euros (146 million dollars) to Latvia after its parliament agreed to a fresh round of austerity measures in April, the European Commission said in a statement. "However, the authorities have decided not to request (it), given the current financial position of Latvia, which is better than originally expected," the commission said. "The unused funds will be transferred to the next tranche to be released, upon fulfilment of conditions ... and if requested by the Latvian authorities, before the end of the assistance, which expires on 19 January 2012," it said. The EU and the IMF agreed to lend Latvia up to 7.5 billion euros in December 2008. The Baltic country, already reeling after its domestic housing bubble burst, was badly hit by the global financial crisis, The Latvian economy contracted by 18 per cent in 2009, but has been recovering ever since.
