The Prime Minister confirmed the continuation of the strict budget policy of the government to the delegation of the IMF

09.12.2008 | 12:58

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Tallinn, Stenbock House, 9 December 2008 – Prime Minister Andrus Ansip confirmed to the International Monetary Fund (IMF) delegation, being on a regular visit to Estonia, that the government continues with the strict budget policy. According to the Prime Minister, at the moment, in the Estonian conditions, this mainly means keeping the budget deficit under control. Ansip also noted that when the situation gets better, the government must return to preparing a budget with a surplus as fast as possible.

At the meeting with the IMF, the financial and economic situation formed in Estonia and the region as well as the government’s budget policy were analysed. Andrus Ansip stated that in the medium term, the financial policy goal of Estonia is also a budget with a surplus, and stressed that the collection of reserves in good times is the guarantee to the good financial situation of a country. “Across cycles, the budget policy goal of Estonia should be a surplus in the amount of one per cent of the GDP,” he said.

Franciszek Rozwadowski, the head of the IMF delegation, noted that the effect of a strong budget policy can be seen especially during the rough times and thanks to the reserves, Estonia is in a considerably better situation than several other countries. At the same time, he stressed that the reserves should not be used too light-heartedly because the existence of these is extremely necessary for the reliability of a country.

At the meeting, the main financial and economic policy goal of Estonia – the adoption of the euro – was also discussed. The Prime Minister stated that the government will make its best efforts to ensure the joining to the Eurozone already in the coming years.

The IMF delegation will be in Estonia from 9 to 15 December to complete the regular Article IV Consultations of 2008 between the IMF and Estonia, which began this year in May. The head of the IMF delegation, Franciszek Rozwadowski, will present a summary of the visit on Monday, 15 December at the joint press conference of the IMF and Estonia held at the Bank of Estonia.

The International Monetary Fund discusses the important economic policy subjects with all member states every year. During these so-called Article IV Consultations, the report of the IMF with economic policy evaluations on Estonia will be completed, which will be discussed by the Executive Board of the IMF and then published.

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