RIGA, June 12 (Reuters) - Latvia has avoided bankruptcy after agreeing on budget savings to win further loans from the European Union and International Monetary Fund, the prime minister said on Friday.
Government parties and social partners agreed on Thursday on savings worth 500 million Latvian lats ($1.01 billion), including cuts in pensions and state salaries.
"Yes, with yesterday's decisions the state has really been saved from bankruptcy," Prime Minister Valdis Dombrovskis, who leads a five-party coalition, told public radio.
He said the government was looking at accelerating parliament approval of the budget, currently set for June 17, as lenders had said more funds could be given to Latvia after the budget had been backed in parliament. (Reporting by Patrick Lannin; Editing by Kim Coghill)