RIGA (AFP) - Latvia's coalition government has agreed to live up to the controversial belt-tightening terms of an international bailout for the crisis-stricken state.

"It is obvious that Latvia will fulfil its obligations to international lenders," Finance Minister Einars Repse told reporters after crunch talks among the five-party coalition's members.

The Baltic nation has been under intense pressure from Sweden and the European Union -- the two largest donors to the 7.5-billion-euro (11-billion-dollar) rescue package that also involves the International Monetary Fund -- to respect its terms.

Einars Repse added that details of the latest round of cuts would be revealed "within a week."

Prime Minister Valdis Dombrovksis said the government first had to "coordinate the budget consolidation with international lenders and agree within the coalition."

"Then we can move forward" on the measures, he said.

Under the deal with Sweden and the European Union, Latvia committed itself to slash 500 million lats (711 million euros, 1.035 billion dollars) each year until 2012 in order to meet EU-set rules on reining in the public deficit -- the shortfall between public revenues and spending.

But the two largest forces in the coalition, the People's Party and the Union of Greens and Farmers, two weeks ago warned lenders that they objected to some of the measures, saying they could simply worsen Latvia's economic crisis.

Riga has so far struggled to find savings of more than 325 million lats for 2010. It has been seeking leeway from lenders as its drive to pare public services to the bone, slash welfare benefits and raise taxes runs into increasing domestic controversy.

Latvia, which broke from the crumbling Soviet bloc in 1991 and joined the European Union in 2004, had enjoyed years of robust economic growth before plunging into recession last year. Its economy is expected to contract by 18 percent this year.