Crisis

None of the Latvian officials will receive the salary increase in 2009. This decision was made by the Latvian cabinet council during the special meeting held on September 4. This decision was caused by the upcoming expected economical crisis in the country. Prime Minister Ivars Godmanis warned the citizens about the crisis last week.

Besides, due to the saving mode of the country, ministries are instructed to decrease their costs by 10.6% in 2009. – The Latvian radio reports. On September 2, the Prime Minister stated that the economical situation in Latvia is expected to be critical in the 3rd quarter of 2009. “We observe dramatic decrease of the economical activities in our country.”- said the Prime Minister. Later on, the head of the Ministry of Finance, Atis Slakteris admitted that the following year will be hard for the country’s economy and the decrease of Latvia’s budget will be the biggest since Latvia gained independence