IMF expresses concerned about airBaltic rescue plan

The International Monetary Fund (IMF), which together with the European Union bailed out Latvia to the tune of €7.5 billion in 2008, revealed that it had not been consulted about Latvia’s plans to inject 16 million lats ($30.9 million) of public money to rescue airBaltic. To be able to fund the airBaltic bail out, the Latvia government will need to adjust its 2011 budget to find the money, However under the terms of the 2008 agreement with the IMF and the EU, Latvia is required to notify them of any changes to their budget targets. Upon hearing the news, Mark