OREANDA-NEWS. December 14, 2012. Latvia announced its intention to make an early repayment of its entire outstanding obligations to the International Monetary Fund (IMF) amounting to SDR 603.038 million (about €714.3 million). Latvia had borrowed from the IMF under the Stand-By Arrangement (SBA) approved in December 2008 (see Press Release 08/345).

IMF Managing Director Christine Lagarde said: “I welcome Latvia’s decision to repay early its outstanding obligations to the Fund. The rebound from the crisis is the fruit of the steadfast efforts made by the people of Latvia and its authorities, with whom we look forward to continuing a close and constructive relationship.”

Total drawings by Latvia under the Stand-By Arrangement were equivalent to SDR 982.24 million (about €1.16 billion), out of a total of SDR 1.52 billion (about €1.80 billion) that were made available. Under the original schedule, the final repayment of outstanding loans from the IMF would have taken place in 2015.

On September 14, 2012, the Latvian authorities made an early repayment of obligations to IMF amounting to SDR 178.448 million (€211.4 million; see Press Release 12/314).

The Executive Board is expected to meet in January 2013 to complete the 2012 Article IV Consultation and Second Post-Program Monitoring Discussions with Latvia.