Analytics, Budget, Financial Services, Latvia, Shadow economy

Timothy Gaithner and Valdis Dombrovskis. Washington, 16.06.2010.

Zoellick expressed his recognition of the structural reforms carried out by the Latvian government, which will contribute to the sustainability of the Latvian economy. The WB president also inquired about the latest developments in the Latvian energy and banking sectors, as well as in Latvia's relations with Russia. The prime minister also spoke about the possibilities for continuing to develop the transport and logistics sector, including among other things the strengthening of the transit of NATO supplies to Afghanistan through Latvia.

Dombrovskis also met with U.S. Vice President Joe Biden, who expressed his gratitude for Latvia's participation in the international operation in Afghanistan, as well as recognizing the country's achievements in overcoming the economic crisis. The Latvian prime minister and U.S. vice president both agreed that the current U.S. policy for relations with Russia is a positive one, and corresponds with Latvia's security interests.

At the White House, the Latvian premier also met with United States National Security Advisor James Jones for discussions of Latvia's involvement in the stabilization and renewal of Afghanistan, as well as U.S. relations with the European Union and Russia, and NATO's new Strategic Concept. Jones expressed his hope that the United States and European Union would cooperate ever closer in programs designed to combat the funding of terrorist organizations.

Another meeting took place between Dombrovskis and U.S. Secretary of the Treasury Timothy Gaithner. The two officials discussed economic and fiscal matters, and the prospects for the euro zone and global economic reform. Dombrovskis thanked Gaithner for the expert assistance given to Latvia by the U.S. Treasury.

The prime minister also met with Chairman of the United States Federal Reserve Ben Bernanke, who is responsible for implementation of U.S. monetary policy and supervision of the U.S. banking system. During the meeting, Dombrovskis spoke about the budget consolidation measures and structural reforms which had been carried out in Latvia, and the two also discussed solutions to the international financial crisis. Prime Minister V.Dombrovskis informed about the budget consolidation and structural reforms implemented in Latvia, as well as discussed with B.Bernanke the solutions to global financial crisis and processes within the framework of G20.

A meeting also took place with Congressman Alcee Hastings, during which the two officials discussed U.S. involvement in EU Eastern Partnership countries, as well as the latest developments at the Organization for Security and Cooperation in Europe. The prime minister also gave a speech at one of the leading Washington think tanks – the Center for Strategic and International Studies – in which he spoke about the overcoming of the economic crisis in Latvia, and later met with representatives of the diplomatic corps in Washington at a reception organized by the Latvian embassy.

Today Dombrovskis will meet with Naouyuki Shinohara, deputy executive director of the International Monetary Fund, and will later give two interviews to the 'Washington Post" and "Houston Chronicle" newspapers, as well as make an address at the National Press Club.

After the visit to the United States, Dombrovskis will go to Brussels, where he will participate in a European Council meeting on June 17.