The IMF postponed the second tranche of the loan in Latvia.

SyuzhetyAntikrizisnye loans MVF02.04.2009Meksika asked for help from MVFMezhdunarodny Monetary Fund (IMF) has decided to postpone the next tranche of the credit crisis in Latvia. The statement was made by the Prime Minister of Latvia Valdis Dombrovskis, reported AFP. It amounts to 200 million euros. The reason for delaying the transfer tranche was the inability of the Government of Latvia to cope with a growing budget deficit.
Initially, the IMF should give Latvia the next tranche of the loan in May and June of this year. When now the country should expect this money, yet unknown. According Dombrovskis, now Latvia expects the loan from the European Central Bank in the amount of one billion dollars.
Latvia was one of the most affected by the global crisis in Europe. At the end of the fourth quarter of 2008, GDP declined by 10.3 percent over the same period a year earlier. According to the government, the economy of Latvia in 2009 will decrease by 12-15 percent. In early March 2009 Dombrovskis, warned that without IMF credit Latvia can become bankrupt by the middle of this year.
In late February, the Government Ivar Godmanis sent his resignation to the background of severe economic crisis.
The total amount of the credit crisis the IMF, which agreed to Latvia was 7.5 billion euros. The first tranche of the loan in 590 million euros it has already received. The main condition of funding the IMF called the Latvian lats rate stability and fiscal discipline. According to the IMF, the country's budget deficit in 2009 should not exceed five per cent of GDP.