Page  1
PROGRAM INFORMATION DOCUMENT (PID) 
CONCEPT STAGE 
Report No.: AB4853  
Operation Name 
Latvia, Financial Sector Development Policy Loan 
Region 
EUROPE AND CENTRAL ASIA 
Sector 
Banking (100%) 
Project ID 
P115709 
Borrower(s) 
LATVIA 
Implementing Agency 
MINISTRY OF FINANCE 
Date PID Prepared 
May 11, 2009 
Estimated Date of 
Appraisal Authorization 
May 14, 2009 
Estimated Date of Board 
Approval 
September, 2009 
1.  Key development issues and rationale for Bank involvement 
 
The project aims at restoring financial sector stability in the country. 
 
2. Proposed objective(s) 
 
The objectives of the proposed project are to 
support the Government’s reforms in the financial sector, 
aimed at ensuring the financial sector is sound and able to absorb the effects of the international crisis 
and the contraction of economic activity. 
 
3. Preliminary description 
 
The proposed Financial Sector Development Policy Loan is designed to support a program of assistance 
to Latvia to address the effects of the financial sector crisis. This IBRD loan is expected to be withdrawn 
in a single tranche of USD 266 million. 
 
The loan focuses on policy actions addressing the immediate needs to stabilize the financial sector and 
to enhance its long term stability.  These reforms aim to: (i) strengthen the capacity of the authorities to 
address potential problems in the financial sector that may arise in the context of the current financial 
crisis, (ii) accelerate mortgage and corporate debt restructuring in light of rapidly increasing defaults, 
and (iii) strengthen the regulation and supervision of the financial system. 
 
4. Environment Aspects 
 
Specific actions under the proposed operation are not expected to have any significant negative effect on 
the environment.  The specific country policies supported by the project are not likely to cause 
significant effects on the country’s environment and natural resources.  
 
5. Tentative financing 
Source: ($m.) 
Borrower 0 
International Bank for Reconstruction and Development 
266 
 Total 
266 
 
Page  2
6. Contact point 
 
Contact: Sophie Sirtaine 
Title: Sector Manager 
Tel: (202) 458-7006 
Fax: (202) 522-3687 
Email: ssirtaine@worldbank.org