OREANDA-NEWS. On 31 March 2009 was announced, that Valdis Dombrovskis, Prime Minister of the Republic of Latvia, met Mark Griffiths, Head of the Technical Assistance Mission of the International Monetary Fund (IMF) and Elena Flores, Head of the European Commission Mission.

During the meeting, the officials discussed the implementation of the memorandum of the IMF and the Latvian Government, as well as the measures to be taken for receiving further financing. As the Prime Minister Valdis Dombrovskis noted: „Currently, Latvia has to accomplish several important tasks prior to the receipt of the next sum of the assistance, planned in June this year. First, we have to prepare budgetary amendments, reducing the state expenditures."

In talks with the representatives of the IMF, it was highlighted that the reduction of expenditures has to deal with structural reforms in the budget expenditures, and not a mechanic reduction of expenditures. The structural reforms will be implemented, continuing the audit in the public administration with an aim to consolidate functions and avoid the doubling of functions. The reforms are needed in the spheres of health, education and the interior among others. Proposals for the development of structural reforms will be made in cooperation with the World Bank and other international partners.

V.Dombrovskis highlighted that the objectives of the budgetary reforms is to revive the economy and achieve that the balance of the state budget is in line with the criteria that have to be met in order to join the euro zone. V.Dombrovskis stressed the need to develop a sustainable budget strategy that would ensure reduction of the budget deficit to 3 % of GDP in 2011, thus allowing Latvia to join the euro zone. During the negotiations, it was concluded that the accession to the euro zone is directly linked to the stability of the Lats' exchange rate.

In the preparation of the amendments to the budget, Latvia will cooperate with the international experts, assessing the solutions and avoiding premature decision-making. The proposals on how to ensure the objectives set forth in the plan for macroeconomic stabilisation will be prepared within the month.

The Head of the Technical Assistance Mission of the IMF Mark Griffiths appraised the meeting with the officials of Latvia as productive, also stressing his confidence in Latvia's determination to implement the reforms.

V.Dombrovskis informed that those talks were in a great extent as introductory negotiations; therefore specific amounts of budget deficit were not concerned.