BRUSSELS, July 2 (Reuters) - The European Commission recommended on Thursday that Latvia bring its public deficit below 3 percent of gross domestic product by 2012, and released a 1.2 billion euro loan instalment.
"The deadline is consistent with Latvia's ongoing process of economic and budgetary adjustment and its medium-term euro adoption aim, which is the anchor of its strategy," the Commission said in a statement.
It said the loan -- the second installment of EU aid to Latvia -- would be be disbursed in July. (Reporting by Mark John)