By the end of last week, the Baltic country of Latvia was expected to have priced an RMBS for about $63.6 million, the first of its kind in Central Europe, according to sources. Wachovia Securities is the arranger and Moody's Investors Service has given the deal preliminary ratings of Aa2' to a senior tranche - sized at $60.1 million - and Baa1' to a $3.6 million subordinated piece, both with projected legal final maturities of 22 years. Apparently no other agency is rating the bond, originated by a Delaware-based nonprofit, the Baltic American Enterprise Fund (BalAEF).

The deal appears to be part of a $250 million securitization program described on the Web site of the International Finance Corp., an arm of the World Bank. The multilateral will invest up to $43 million in the three-year program. The IFC is already committed to snapping up the subordinated tranche of the current transaction, according to a well-placed source.

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