IMF ready to help Latvia in economic crisis
Sunday, 23 November 2008
WASHINGTON, Nov 22 (AFP): The International Monetary Fund (IMF) is "ready to rapidly assist" Latvia deal with its economic crisis, in close cooperation with the European Union, IMF chief Dominique Strauss-Kahn said yesterday in a statement.
"I have informed the authorities that the IMF stands ready to rapidly assist their efforts in the context of a comprehensive economic programme, and in close cooperation with the EU," the managing director said.
"The IMF's Executive Board has initiated fast-track procedures" to release IMF funds to Latvia should the need arise, he added.
The financial institution recently simplified its lending procedures to provide quicker aid to needy countries caught up in the global financial turmoil.
Latvian Prime Minister Ivars Godmanis announced Thursday his country was about to launch formal talks with the EU and IMF on financial aid to cushion the Baltic nation from its deepening economic crisis.
Godmanis told reporters the goal of the talks was to "stabilise the financial system."
Latvia, which broke free from the crumbling Soviet Union in 1991, has enjoyed a reputation as an economic "tiger," notably since joining the EU.
But after several years of double-digit growth, the country of 2.3 million people is now grappling with a recession as once-robust domestic demand slumps in the face of high inflation, tighter domestic credit rules and the global economic crisis.
"I have informed the authorities that the IMF stands ready to rapidly assist their efforts in the context of a comprehensive economic programme, and in close cooperation with the EU," the managing director said.
"The IMF's Executive Board has initiated fast-track procedures" to release IMF funds to Latvia should the need arise, he added.
The financial institution recently simplified its lending procedures to provide quicker aid to needy countries caught up in the global financial turmoil.
Latvian Prime Minister Ivars Godmanis announced Thursday his country was about to launch formal talks with the EU and IMF on financial aid to cushion the Baltic nation from its deepening economic crisis.
Godmanis told reporters the goal of the talks was to "stabilise the financial system."
Latvia, which broke free from the crumbling Soviet Union in 1991, has enjoyed a reputation as an economic "tiger," notably since joining the EU.
But after several years of double-digit growth, the country of 2.3 million people is now grappling with a recession as once-robust domestic demand slumps in the face of high inflation, tighter domestic credit rules and the global economic crisis.