Presentation by Minister of Finance of the Republic of Latvia Andris Vilks at Country workshop: "EU Balance-of-Payments assistance for Latvia: Foundations of Success" organized by the European Commission, Directorate General for Economic and Financial Affairs, and the Bank of Latvia. Brussels, March 1, 2012

1. EU Balance of Payments for Latvia:
Foundations of Success
Andris Vilks
Minister for Finance
Brussels, March 1, 2012
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2. From Crisis to Recovery
Impact of the Crisis
Access to financial Fall in 21% contraction Correction of Adjustment Internal
markets closed external of GDP, domestic of the labor devaluation
demand frontloaded imbalances market
adjustment
17% of GDP
2008 2011
Agreement on the Completion of the
International Loan
Euro target - crisis exit strategy International Loan
Programme Programme
Return of Fiscal Target Support from Credit
economic consolidation consolidation domestic and rating
growth in and structural improve fiscal international upgrade
2010 reforms underpin position community Return to
competitiveness financial markets
Outcome of the Crisis
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3. Fiscal Targets and Results
Latvia achieved great progress on the
way to budget stabilization.
If macroeconomic scenario is in line with
forecasts, further budgetary consolidation
won’t be necessary and the medium-term
fiscal policy targets will be achieved.
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4. Lessons Learned
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5. On the Way to Euro
Key priorities and remaining steps
Adaption of the Structural Compliance Sustainable
Fiscal Discipline reforms and with the Economic
Law and prudent maintaining Maastricht Growth
fiscal policy the SMOU criteria
conditions
2011
Completion of the 2014
International Loan Euro accession strategy Joining Eurozone
Programme
Eurozone crisis = the crisis of trust
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6. Challenges in Future
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