Enterprise & Financial Sector Restructuring Project

closed

The objective of the Enterprise and Financial Sector Restructuring Project is to support the Latvian government's reforms in the enterprise and financial sectors, focussing particularly on privatization and bank restructuring. These reforms will pave the way for improved intermediation through the banking sector. The credit component of the loan will act as an incentive to the development of intermediation at the medium- and long-term end of the maturity spectrum. The project will have three components: 1) a credit line component that will provide resources for commercial banks to make medium- and long-term loans to recently privatized and other private sector Latvian enterprises for investment and related permanent working needs; 2) an institutional development component that will support the Latvian Privatization Agency by financing an accelerated privatization track through open auctions, and to also support the development of a Project Management Unit and a Technical Unit; and 3) a financial infrastructure investment component for computer hardware and software for payments system development.