Latvia's ruling coalition agreed on Monday to take measures to cut the country's 2010 budget deficit to meet promises to international lenders and keep on track for further loans, the prime minister of the crisis-hit nation said.
The Baltic country, which has already slashed public sector wages and pensions this year, came under pressure last week from international lenders to live up to a budget agreement made in July which aimed winning further rescue loans and preventing the country facing bankruptcy and possible devaluation.
Finance Minister Einars Repse said that overall in 2010 budget spending would be cut by 320 million lats and revenues would be raised by 180 million lats, leading to the 500 million lat ($1.04 billion) deficit reduction it had promised.
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