Latvia's Economic and Financial Outlook
Medium Term Funding Requirement and Borrowing Strategy
External borrowing instruments will represent the most significant share of the overall borrowing volume.
Goal
Principles
Medium Term Borrowing Strategy
Ensure timely and full availability of financial resources for covering the
financing requirement, by maintaining continuous borrowing opportunities in
the international and domestic financial markets on optimal terms and
conditions
Flexibility (towards timing, maturities and currencies)
Achieve balance between risks and costs
Consistency and transparency to markets
Borrowing Instruments (BASE scenario)
Benchmark issuances in global capital markets
Continuing issuances in domestic market
Alternative Instruments
Niche capital market instruments (JPY, CHF, etc.)
.
Private placements (reverse enquiries)
.
Loans from international financial institutions (EIB, CEB, etc.)
33
General Financing Requirement
Central Government Budget Balance
Net Lending
Other Flows
at the Treasury's Accounts
Outstanding Central Government Debt
Redemptions
(domestic and external)
Central Government financing estimation
(2019-2021, EUR million)
30-June-2019
2019
Jan-Jun Jul-Dec
2020
2021
Total
Central government budget
balance, net lending and other
flows
629
-1 118
-489
-500
-504
Pre-funding
Strategy For
Refinancing
Debt
Outstanding central government
-793
-182
-975
-1 300
-1435
debt redemption
Of which:
Domestic debt repayment
-236
-140
-376
-114
-91
External debt repayment
-557
-42
-599
-1 187
-1 344
Total
-163
-1 300
-1 464
-1 801
-1 939
Gross borrowing
1 170
300
1 470
1 920
1 100
Of which:
International issuance
1 000
0
1 000
1 800
1.000
Note: Indicative in the planned period
The borrowing volume could be increased in case of:
Liability management activities
Possible restructuring of the government guaranteed commitments (loans)
of several hospitals by refinancing / early repaymentView entire presentation