Dombrovskis Says Latvia Won’t Need Additional Budget Cuts in

Latvia won’t require additional budget cuts this year, Prime Minister Valdis Dombrovskis said in an interview with Latvijas Radio 1.

The budget plan, with a deficit of 2.5 percent of gross domestic product (LAGDCYOY), is based on “realistic forecasts,” he said.

The prime minister’s reaction follows a comment by central bank Governor Ilmars Rimsevics in an interview with Lietiska Diena today that Latvia may need additional fiscal consolidation this year of as much as 100 million lati ($185.4 million) to achieve its deficit target.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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