The EU is committed to providing "financial support to the country in the context of the market pressures that have recently emerged," the EU's French Presidency and the European Commission said in a joint statement.
The Latvian government said on Thursday it was asking for emergency funding from the IMF and the EU after the Eastern European country came under severe economic stress in the wake of the financial crisis.
The EU said it is in close consultations with the Latvian authorities and the IMF to develop a joint response to the growing tensions in Latvia's financial markets.
"The EU stands ready to participate in a coordinated financing package with the IMF conditional upon a strong commitment by the Latvian authorities to implement a rigorous and credible adjustment program in order to underpin balance-of-payments sustainability in Latvia," the joint statement said.
The statement said the aid would come from the EU's medium-term financial assistance facility, which is used for non-euro member states that experience difficulties with balances of payments.
Latvia became the second EU member state following Hungary to seek international support due to the impact of the financial crisis.
Earlier this month, the EU decided to lend Hungary 6.5 billion euros (8.1 billion U.S. dollars) in a joint bid with the IMF to help the country deal with the financial crisis, with the money also from the EU's medium-term financial assistance facility, or crisis fund.
The European Parliament approved a plan on Thursday to raise the ceiling of the EU crisis fund from current 12 billion euros (15 billion U.S. dollars) to 25 billion euros (31 billion U.S. dollars).
