The candidate for the premiere of Latvia has warned the country about a possible bankruptcy.

KommentariiKletka for tigra25.02.2009Risk defaults in Eastern Europe is rapidly rastetPopal under krizis23.02.2009Latviya remained without premeraKandidat in the Prime Minister of Latvia Valdis Dombrovskis said that Latvia is on the verge of bankruptcy " , reported AFP. He said the previous government has not fulfilled the obligations required under the IMF stabilization loan.
Latvia has agreed to loan from the IMF and the EU in the total amount of 7,5 billion euros. Of this amount, in the country's coffers have already been tranche in the amount of 1,6 billion euros. The principal terms of the issuance of credit were reduced public spending and tightening monetary policy.
Dombrovskis said the first task of the new government was a "belt tightening". In particular, he proposed to reduce the cost of state budget to a billion euros by the end of March 2009. "An alternative to reduce costs is to bankrupt the state," - he said. According to him, the Ministry of Finance have enough money for ongoing operations only two months.
Despite the extremely negative macro-economic situation in the country, Dombrovskis stressed that he would continue the policy anchor currency - lats - the euro. Devaluation lats, which the government encourages a number of experts, would help restore the competitiveness of the economy and stimulate exports. However, such a solution is dangerous to the social and political point of view, as would be sharply reduced standard of living in the country.
February 24, the rating agency Standard & Poor's downgraded the first long-term sovereign rating of Latvia to the "garbage" - "BB +". In doing so, S & P left a "negative" outlook on the rating, which means a high probability of further decline.
The economic situation in Latvia is the worst among all EU countries. Because of the global financial crisis, the country's GDP in the fourth quarter fell by more than 10 percent. The worst rates in Europe shows only Ukraine.
Valdis Dombrovskis was nominated for the post of prime minister President Valdis Zatlers on February 26. As a candidate for the post identified several candidates, including the co-owner of Russian Alfa-Bank Pyotr Aven.