On Friday, 26 February, the Public Expenditure and Audit Committee of the Parliament of Latvia (Saeima) met with Mr.Valdis Zatlers, President of Latvia, to discuss the use of the international loan.

During the discussion, Mr. Andris Bērziņš, Chairman of the Committee, pointed out that after summing up all the information at the disposal of the Committee, it can be concluded that, in general, the international loan was used for its stated purposes. That is, to reduce the state budget deficit, to refinance the country’s internal debt, to support Parex banka JSC, and to raise the liquidity reserve of the State Treasury. One of the most topical issues continues to be the use of the EU funds for warming up the economy. 

The President praised the Committee’s work in monitoring the use of the loan. He stressed that it is now important to explain to society why the loan was necessary and whether the borrowed money has been used appropriately. Clear answers to these questions, Mr.Zatlers noted, would dispel all the myths circulating in society about the use of the loan.

By the end of 2009 Latvia had received several instalments of the loan amounting to LVL 2,238 billion. Currently, 56% of the international loan has been spent. The majority of these funds have been used for financing the state budget deficit and supporting Parex banka JSC.

Within two weeks the Public Expenditure and Audit Committee of the Saeima will present the report on the use of the international loan which is drafted in close cooperation with the State Audit Office and experts.

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