Latvian Austerity Fervor Outstrips IMF After Loan Payback
Latvia has cut spending so much that even the International Monetary Fund says it's gone too far. Now the Baltic nation has paid off its 2008 bailout loan before any other nation, depriving the lender of any say-so over its policies.
A drop in the guaranteed minimum income, which aids the country's poorest, took effect Jan. 1, two weeks after Latvia paid off the IMF's chunk of a $9.9 billion rescue loan. The fund, better known for making deficit-cu...