Riga - The Latvian parliament completed an extraordinary 20- hour sitting Friday morning as part of its bid to win approval from the International Monetary Fund (IMF) for an economic assistance package thought to be worth up to 6 billion dollars.

The parliament commenced its sitting at 9 am on Thursday and finally broke up at 5 am Friday morning.

According to the legislation passed by parliament, Latvia will save around 1 billion lats (1.85 billion dollars) by cutting spending and increasing revenues in 2009, a sum equivalent to 7 per cent of the small Baltic state's gross domestic product.

Though not officially stated, it is believed that the IMF would only consider helping Latvia with a loan when it had proof of the country's commitment to reform.

Finance Minister Atis Slakteris, who has been leading negotiations with the IMF, survived a no-confidence vote halfway through the legislative marathon.

As recently as November 14, the parliament passed its 2009 budget based on a projected deficit of 1.5 per cent of GDP.

Less than a month later, the revised budget projects a greatly increased deficit of 4.9 per cent.

Even so, Latvian Prime Minister Ivars Godmanis said that the parliament had proved its worth.

"It undoubtedly proves that this parliament - and I am not afraid to say it - is one of the strongest parliaments in Europe. Heads of international institutions had been doubting it," Godmanis said.

"Such budget cuts could not practically be adopted in such a short time by any other country," he boasted.

However, Latvian President Valdis Zatlers warned that if the IMF rejects Latvia's approach, members of parliament might be in for more long sessions in the future.

"In such case there would be a plan B, which would be even harsher, even more unpleasant and even more painful to the state, entrepreneurs and each resident. We have to be ready for any situation, including a situation where we do not get the loan," he said Thursday evening. (dpa)