RIGA, July 23 (Reuters) - Latvia's Prime Minister Valdis Dombrovskis said on Thursday talks with the IMF were making progress on issues of pensions and taxes and results of the talks are expected early next week.
The IMF has withheld a payment of 200 million euros ($285 million), as part of a 7.5 billion euro package from the European Union and the Washington-based lender, as the IMF seeks to clarify conditions that include more budget cuts and tax policy.
"Talks continue and I think in the beginning of next week will have some results," Prime Minister Valdis Dombrovskis told journalists after a second round of meetings late on Thursday.
"We are progressing in our talks with respect to sensitive issues such as pensions and taxes, and we have similar views like with the European Commission," Dombrovskis said during a interview on the privately owned TV 3.
Asked if he agreed with his economy minister, who said earlier that the postponed IMF loan tranche of 200 million euros could be paid in August, the prime minister said it depended on the IMF.
"We will receive the decision relatively quickly, but then it depends on the internal procedures of the IMF, but I think the most important part is that they commit," Dombrovskis told Reuters on the sideline of a press conference.
He added that the country was not in a rush for funds from the IMF.
"Not that we are short of cash in August. We will receive the commission's money," Dombrovskis added.
Latvia has been in hard-nosed talks with the IMF for some weeks already despite reaching a deal for EU commission funds of 1.2 billion euros to be paid at the cost of giving up its independent decision-making on fiscal policy.
However, a deal with the IMF is still important for the country.
Dombrovskis has said it could be more difficult for Latvia to get more financial aid from the EU if it does not receive the next instalment of IMF aid.
The conditions agreed to with the EU ensure the Latvian government will not make any decisions regarding fiscal policy without first consulting with the EU and IMF.
Latvia's economy has plunged into deep recession after a rapid growth spurt during the global credit boom. Gross domestic product is expected to contract by 18 percent this year. ($1=.7030 Euro)
(Reporting by Jorgen Johansson; writing by David Mardiste, Editing by Chizu Nomiyama)