IMF Staff Country Reports

Republic of Latvia: First and Second Reviews Under the Stand-By Arrangement and Request for Waiver of a Performance Criterion

Publication Date:

July 18, 2002

Electronic Access:

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Summary:

This paper focuses on the Republic of Latvia’s First and Second Reviews Under the Stand-By Arrangement and a Request for a Waiver of a Performance Criterion. Latvia has continued to follow prudent macroeconomic policies. All performance criteria under the IMF-supported program have been observed—except that the end-December 2001 fiscal deficit ceiling was exceeded by 0.2 percent of GDP because of local government budget overruns. Key financial sector indicators suggest no major vulnerabilities at this time. The current account deficit remains the main risk to Latvia’s economy.

Series:

Country Report No. 2002/149

Subject:

Balance of payments Budget planning and preparation Current account deficits Expenditure Government debt management Public financial management (PFM) Revenue administration