IMF to grant Latvia loan tranche of 200 mln euros.

WASHINGTON, February 18 (Itar-Tass) - The International Monetary Fund
(IMF) is granting to Latvia a loan tranche worth 200.3 million euros
(about 275 million US dollars). This decision was made on Wednesday on the
results of the second review of the anti-crisis programme that Riga is
fulfilling with the Fund's support. As a result, the total sum provided
within the programme is to reach 1 billion euros (about 1.37 billion US
dollars).
The Latvian economy is affected by a severe crisis. For its overcoming
Riga attracts loans from international organisations, including the EU and
IMF. However, the Fund provides money only on the condition of the
fulfilment of coordinated conditions of the economic programme, including
limiting the budget's social programmes. In the crisis conditions this
entails major difficulties for Latvia.
According to an IMF press release, the Executive Board of the
International Monetary Fund on February 17 completed the second review of
Latvia's performance under an economic program supported by a Stand-By
Arrangement (SBA). The Board decision enables the immediate disbursement
of an amount equivalent to SDR 178.4 million (about 200.3 million euros or
US$274.9 million), bringing total disbursements under the SBA to SDR 892.2
million (about 1.00 billion euros or US$1.37 billion).
The SBA, which was approved on December 23, 2008 for an amount
equivalent to SDR 1.52 billion (about 1.71 billion euros, or US$2.34
billion), entails exceptional access to IMF resources, amounting to 1,200
percent of Latvia's quota in the IMF. The IMF's support is part of a
coordinated effort with the European Union, Nordic governments, the World
Bank, and other bilateral creditors that are providing the financing
necessary to ensure that essential public services, especially support to
those most severely hit by the crisis, can be maintained in the face of
the sharp drop in government revenues, says the release.
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.German economy minister to discuss energy, trade issues in Moscow.

FRANKFURT AM MAIN, February 18 (Itar-Tass) - Issues of cooperation in
the sphere of the energy industry and trade will be discussed here by
German Federal Minister of Economics and Technology Rainer Bruderle who is
arriving in Moscow on a two-day visit on Thursday.
He will meet and hold talks with Gazprom CEO Alexei Miller, a number
of Russian ministers, the DPA news agency reported.
Over the past several years Germany has been Russia's major trade
partner, and Russia by the 2008 results became Germany's largest partner
among countries of Eastern and Central Europe. The bilateral trade
turnover in 2008 reached a record high level of 67.2 billion US dollars.
However, due to the global crisis, over the first six months of 2009
Germany's exports to Russia decreased by 39 percent. This year the Eastern
Committee of the German Economy hopes for a 10-percent growth of the
export to Eastern Europe and Russia, which, according to the head of this
association of German industrialists, Klaus Mangold, "has rather well
overcome the recession" and remains "a conjuncture locomotive" of the
region, the main East European buyer of German industry products.
About 6,000 German companies are successfully working in Russia.
Leading companies of the two countries are implementing a number of joint
energy products.
German-Russian relations have a long history. Since the end of the
Cold War, Germany and Russia have developed their "Strategic Partnership"
which has bonded the two countries. The two countries have a history of
strained and painful relationships, but the end of the Cold War and the
re-unification of Germany have given new life to German-Russian relations.
Energy is indisputably one of the most important factors of relation
between the two nations. Germany and Russia depend with each other for
energy, namely in Germany's need for energy from Russia and Russia's need
for heavy German investment to develop their energy infrastructure.
However, current political issues, such as the democratisation of
Russian society, characterize a relationship with many unanswered
questions.
Relations between the two nations since the fall of state-capitalism
have been generally good but not always without tension. German chancellor
Gerhard Schroeder placed high value on relations with Russia and worked
for the completion of the Nord Stream gas pipeline between them. His
successor Angela Merkel has been more critical and clashed with Russian
president Vladimir Putin over human rights and other issues.
The Lufthansa cargo hub dispute took place in 2007.
Germany and Russia have frequent exchange of visits on the political,
economic and cultural agenda. Russia regards Germany as its leading
European partner, and is surely its largest and most important trading
partner.
Many former East Germans have a good knowledge about Russia. And
German language is in a firm second place (behind English) at Russian
schools. On 11 April 2005, a "Joint Declaration on a Strategic Partnership
in Education, Research and Innovation" was signed by Chancellor Schroeder
and President Putin. This accord aims at stepping up bilateral cooperation
in the education sector, particularly in training specialist and executive
personnel.
Germany has a heavy industry with the size and capacity to modernize
infrastructure in Russia. Russia in turn has vast natural resources which
are of significant interest to the German economy.
A major success in environment policy is Russia's ratification of the
Kyoto Protocol on 27 October 2004, which will also bring economic
benefits. Germany was a strong supporter for Russia's participation in the
Group of 8. Dresdner Bank of Germany has close ties to Gazprom, by far
Russia's largest industrial company.
Germany alongside with France and Russia opposed Ukrainian and
Georgian invitation to NATO during NATO's Bucharest summit in 2008. In
result, NATO did not invite Ukraine and Georgia to MAP.
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