Second Safety Net and Social Sector Reform Program

The Safety Net and Social Sector Reform Program focuses on measures to mitigate the social cost of fiscal consolidation and to ensure a robust safety net for households affected by the crisis. This is the second of a program of two loans focused on social safety net support and medium-term social sector expenditure reforms. The objectives of the program are: (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 that 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 focused mainly on the first and second objectives. The second operation expands this focus to the third objective, seeking to support the structural reform program that the Latvian Government has put in place for the social sectors.