Government informs about the progress of economic stabilisation programme action plan
On Tuesday, June 2, the Government got acquainted with the information report on the progress of economic stabilisation programme action plan. Key assignments were carried out in the field of budget amendments, adaptation of existing legislation, and the European Union (EU) funds acquisition.
One of the assignments was related to submission of budget amendments to the Parliament. On Monday, June 1, the Government agreed on budget amendments for 2009 envisaging general government consolidated budget (general government basic budget and special budget) revenue in amount of 3 984.8 million lats and expenditure – 5 054.2 million lats. Budget amendments were submitted to the Parliament on Tuesday, May 2, however the Government will continue work at state budget expenditure cuts also after draft budget amendments will be submitted to the Parliament.
Having evaluated progress of the EU funds acquisition the Ministry of Finance informed that till April 30 in total 73.19 million lats were paid to EU funds final beneficiaries, which is equal to 20.8% of total repayments. It is planned that with the budget amendments expenditures will be increased by 79 million lats to ensure financing for implementation of the EU funds.
Amendments to the Deposit Guarantee Law, prepared with the aim to specify mechanism of reimbursements from the deposit guarantee fund, as well as to supplement the procedure for calculation of payments into the deposit guarantee fund envisaging both use of calculation approach based on risk evaluation and possibility to ensure fast renewal of deposit guarantee fund after the payment of reimbursements from the deposit guarantee fund have been submitted to the Parliament. Also amendments to the Insolvency Law targeted at improving existing insolvency regulation, including clarification of the creditors’ voting system, have been submitted to the Parliament.
It is possible to follow the progress of concrete assignments on the home page of the Ministry of Finance: http://www.fm.gov.lv/?lat/aktualitates/jaunumi/49342
The Cabinet of Ministers also decided to introduce changes in the action plan because deadlines for several assignments have been changed.
As reported, the European Commission (EC), International Monetary Fund (IMF), World Bank, European Bank for Reconstruction and Development (EBRD) and several EU Member States agreed on provision of financial assistance to Latvia in amount of 7.5 billion euro (5.27 billion lats). Allocation of the financing is based on Latvia’s Economic Stabilisation and Growth Revival Programme approved by the Parliament last year, as well as Letter of Intent sent to the IMF and Memorandum of Understanding signed between Latvia and the EC.
Determined and timely implementation Latvia’s Economic Stabilisation and Growth Revival Programme is a pre-condition for receipt of international loan.
