Latvian health care gets shot in arm

  • 1998-09-10
  • Sandra L. Medearis
RIGA - The World Bank announced Sept. 4 that it will make a two-phase investment in Latvia's health with a low-interest loan totaling $40 million for health education, health facilities and infrastructure. The first injection will be $10 million followed by another $30 million after the year 2000.

"Our analysis shows that the Latvian health sector is a very bankable investment," World Bank program manager Louise Fox said in a joint press conference at the Ministry of Welfare. "We are sure the investment will not only enable Latvia to deliver better health care, but also will contribute to economic growth and a more efficient health sector."

The loan is due in 10 years at a cost of 4 to 6 percent interest, depending on where the World Bank borrows the money, Fox said.

The World Bank committee came to Latvia to review a draft health proposal that includes measures for better training of medical staff, more efficient infrastructure and investment in health care facilities. Patients will realize savings in fees, drug costs and benefit from better diagnostic equipment as a result of the proposed program.

The Welfare Ministry and the World Bank will negotiate a program schedule at the end of the month and iron out legal agreements on which entities will be responsible for certain parts of the program. The two sides will sign the final program documents in Washington D.C. at the end of the year.

On June 6, the World Bank and the Latvian Finance Ministry had an agreement providing for assistance to Latvia's health care reform as state resources are not enough to carry out the transfer to a new health care system following the principles of a democratic country.

Fox said that if the government cuts health program costs and makes it more efficient then the World Bank will have no worries about getting the loan paid. Programs and policies being implemented now will lop off 20 percent of current expenses for facility maintenance and infrastructure, a preliminary analysis shows.

"We are signing an agreement with the Latvian government because Latvia has the capacity to implement such an ambitious program," Fox said. "The program will become a magnet for other foreign aid."