IBRD Loan: €100 million
Terms: Maturity = 10 years; Grace Period = 5 years
Project ID: P115732
Project Description: The First Safety Net and Social Sector Reform Special Development Policy Loan for Latvia aims to support the Government of Latvia’s efforts to (i) to protect vulnerable groups with emergency safety net support during the economic contraction; (ii) to mitigate the social costs of fiscal consolidation; and (iii) to ensure structural reforms lay a foundation for medium term improvements in the social sectors. Given the deep impact Latvia has suffered in the wake of the global crisis, and due to the emergency nature of this program, the first operation will focus mainly on the first and second objectives. The second operation will expand this focus to the third objective. This loan is a part of the international financial support program led by the International Monetary Fund and the EU aimed at easing the impact of the global financial crisis and rapid economic contraction.