EU – Baltic States, Financial Services, Latvia, Legislation

The proposal, put forward by the center-right government headed by Prime Minister Mirek Topolanek with the backing of opposition Social Democrats, was supported by 157 out of 189 members of parliament who were present.

The bill must be approved by the senate before it can take effect.

Czech Finance Minister Miroslav Kalusek told parliament that the loan amounted to "an important act of solidarity in the context of the European Union", and that it would not increase the Czech national debt.

Miroslav Kalousek, the Minister of Finance of Czech Republic has noted, that the Czech loan will be directed for support of the medium and small-sized business of Latvia. More particularly, the enterprises and companies which are involved in foreign trade and current or past successful co-operation with the Czech Republic, which have business relations with Czech and require the facilities for the further development of their business could receive the help.

The loan is in the context of a loan of EUR 3.1 billion for Latvia approved by EU finance ministers on January 20.

As reported, the total amount of financial aid to Latvia from international donors is EUR 7.5 billion.

The European Commission will allot EUR 2.9 billion in 2009, EUR 100 million in 2010 and another EUR 100 million in 2011.

The International Monetary Fund will give Latvia EUR 1.2 billion this year, EUR 400 million in 2010 and EUR 100 million in 2011.

The governments of Denmark, Sweden, Finland and Norway will allot EUR 1.8 billion for Latvia in 2010.

The World Bank will give Latvia EUR 200 million in 2009 and another EUR 200 million in 2011.

The European Bank for Reconstruction and Development, the Czech Republic, Poland and Estonia will give Latvia EUR 200 million in 2009 and EUR 300 million in 2010.