RIGA — President of the Latvian Central Bank Ilmars Rimšēvičs has said he sees some positive signs in the Latvian economy, which has been steeply declining throughout 2009.

“I think that it is still too early to talk about recovery in the Latvian economy, but we at least see that something is slowly stabilizing,” he said in a Sept. 11 interview with Latvian Radio.

He said the economy will likely reach a nadir in spring 2010.

The news comes as a welcome relief to the country, which is currently struggling to implement a government package aimed at turning the ailing economy around. The positive statements were made just a few days after a Sept. 9 by Prime Minister Valdis Dombrovskis in which the head of government unveiled an ambitious new plan that involves both harsh austerity measures and increased social spending.

The central bank head also pointed to an increase in the number of newly registered companies as a sign that “there are people who see a chance.” A total of 2,713 new companies were registered in the country from June to August this year.

Rimšēvičs stressed the importance of successfully passing a 2010 budget before investors will feel confident enough to again place their trust in the country.

“If the 2010 budget is adopted smoothly without any hesitation, then foreign investors understand that the Latvian government will adhere to its plans,” he said.

However, the new budget will still have to overcome numerous objections if it is to get universal support, with some calling for increasing social benefits that have recently been slashed as part of spending slashes.

Aigars Štokenbergs, head of the newly formed Society for Different Politics, said on Sept. 11 that the budget would need to find a way to provide funding for back payments on pensions and allowances for new parents, which were recently cut by half.

“In preparing next year’s budget, provide funding for the repayment of pensioners, working pensioners, working parents,” he said.