Latvia pays back remaining 500 million Lats to International Monetary Fund (IMF)

Latvia pays back a loan to International Monetary Fund (IMF)

Using a successful emission of bonds on international financial markets with an all-tie lowest interest rate Latvia makes next step and pays back the loan to IMF before schedule. This is an important event for Latvia’s economy in general and foreign investors. As a result of this transaction, Latvia will save several million LVL, which will not be used in interest payments, but instead will be invested in the development of our country.

The payment of the IMF loan will be performed using the resources gained from the December 5 bond issue. As it is known, Latvia issued bonds worth $1.25 billion with a fixed interest rate of 2.750% annually.

Latvia received a loan from IMF worth 820.2 million LVL as part of the international loan program.

In accordance with the loan repayment schedule, Latvia began repaying the general amount in March 2012. By September 14, Latvia had paid back 149 million LVL.

It should be added that the international loan program lasted for three years and secured 7.5 billion EUR for Latvia. Latvia used a bit more than half of this amount – 4.5 billion LVL.