OREANDA-NEWS. On February 03, 2009 the Cabinet of Ministers approved Latvia’s Economic Stabilisation and Growth Revival Programme Action Plan which was developed by the Ministry of Finance (MoF) to set concrete tasks, planned results and institutions responsible for implementation of the Plan, reported the Official website www.mk.gov.lv.

The Minister of Finance Atis Slakteris emphasises: “The Plan comprises significant activities aimed at improving of business competitiveness and speeding up acquisition of the European Union structural funds. It also sets forth measures for stabilisation of financial sector, i.e., resume cash flow, facilitate availability of resources and decrease risks to financial system. Implementation of Economic Stabilisation and Growth Revival Programme will reduce influence of risks slowing down the development, as well as stabilise Latvia’s national economy to achieve sustainable growth of gross domestic product and balanced state budget.”

The programme prescribes activities in four sectors: monetary, fiscal and financial policy, as well as promotion of economic competitiveness. Strict fiscal policy foresees further optimisation of budget expenditures aiming at achievement of balanced state budget. Structural changes prescribed in the plan will facilitate improvement of Latvia’s payment balance and decrease economic dependence on foreign financial resources. Changes will also concern improvement of effectiveness in public administration sector, as well as increase in productivity both in business and public service sector.

The Government also agreed to appoint the MoF as an institution responsible for coordination of plan’s implementation. Every month till the 5th date, involved parties will have to report on activities performed and on implementation of tasks set for the following accounting period. In its turn, the MoF will draft informative report on implementation of the plan every month till 15th date.

As it was reported before, the European Commission (EC), International Monetary Fund (IMF), World Bank, European Reconstruction and Development Bank and several Member States of the European Union agreed to provide financial assistance to Latvia in amount of EUR 7.5 billion (LVL 5.27 billion). The decision to provide financial assistance was based on Latvia’s Economic Stabilisation and Growth Revival Programme approved by the Parliament in the end of last year, Letter of Intention to the IMF, as well as Memorandum of Understanding with the EC. Determined and timely implementation of Latvia’s Economic Stabilisation and Growth Revival Programme is a significant precondition for receipt of international loan.

Latvia’s Economic Stabilisation and Growth Revival Programme is available on the home page of the MoF: http://www.fm.gov.lv/?eng/news/49137.

The English translation of the Action Plan for implementation of this Programme will be available on the webpage in the nearest future.