Michael D Higgins (Galway West, Labour)
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Question 180: To ask the Minister for Finance his views on the recently announced International Monetary Fund rescue package for Latvia; the full details of same, and the response to the crisis which the European Union has made; and if he will make a statement on the matter. [46613/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The IMF has not announced a Balance of Payment assistance package for Latvia. However, the IMF has indicated that Latvia is experiencing a sharp downturn in output growth and external funding pressures and that accordingly the Latvian authorities have asked the Fund, together with the EU, to provide technical and financial support.

Under Council Regulation 332/2002, the EU can grant medium-term financial assistance to Member States outside the Euro area. This arises from Article 119 of the Treaty, which says assistance can be provided to a member "in difficulties or seriously threatened with difficulties as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments or as a result of the type of currency at its disposal". The Council Presidency and the Commission are in close consultations with the Latvian authorities and the International Monetary Fund with a view to developing a joint response to the economic and financial situation in Latvia. It is expected that an agreed funding package will be decided on shortly.