Loan to Latvia
A 100 million-euro ($142.6 million) loan to help Latvia fund programs such as health care and education for poor people have approved by the World Bank board of directors. On late yesterday, the Washington-based lender said the loan will help Latvia finance child development and primary education, improve health care, exempt needy households from co-payments for medical services and subsidize drug costs as the country recovers from its worst recession.
The lender’s country director for Latvia Peter Harrold said in the statement “Latvia is now beginning to emerge from the crisis and see positive signs of growth.” For the first time since 2008, the Baltic country plans to sell Eurobonds this year and has drawn about 4.4 billion euros. Yesterday, the fourth review of Latvia’s standby agreement, freeing up about $170.7 million in funding if needed had approved by the International Monetary Fund’s board.
After the country’s second-biggest bank needed a state rescue, Latvia turned to a group led by the European Commission and IMF for the bailout. The loan is the final payment Latvia intends to use from a £ 7.5 billion international bailout authorized in 2008. “This operation ensures that society’s most vulnerable groups are shielded from the worst effects of the downturn,” Peter Harrold said.
