Latvia's Economic and Financial Outlook
Conservative Borrowing Based on Pre-funding
Latvia is conducting a prudent and efficient debt management strategy.
Government Gross Borrowing (EUR million)
TOTAL 1 668
763
TOTAL 1 920
TOTAL 1 470
TOTAL 1 330
TOTAL 1 150
1 087
TOTAL 1 100
534
156
737
621
905
529
936
593
944
833
2016
2017
2018
■Total gross borrowing
2019F
■Pre-funding reserve
2020F
Source: The Treasury
Mid YTM, %
Latvia Secondary Eurobond Market (mid yield to maturity, %)
3.0
2.46
2.5
2.30
2.0
1.5
1.0
0.5
-0.03 0.020.08 0.13
0.10
0.0
-0.08
-0.5 -0.16
-0.29 -0.24 -0.12
-1.0
2021F
Borrowing activities in international capital markets in 2019
•
On February 12, Latvia priced the Eurobond in the international capital
markets in a total amount of EUR 700 million
30-year Eurobond (maturing 19 February 2049)
•
1.26 1.26
0.84
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
LATVIA EUR Eurobond
Source: Data as of 7th July 2019, Bloomberg
30
LATVIA USD Eurobond
LATVIA domestic bonds
•
Yield was set at 1.929%
Coupon was set 1.875%
By this transaction the Treasury has fulfilled largest part of this year's funding
requirement in the international capital markets
On May 20, Latvia re-opened its outstanding 30-year Eurobond by issuing
EUR 300 million:
•
Maturing 19 February 2049
Yield was set at 1.746% and coupon was set 1.875%
With this transaction the Treasury successfully completed a funding plan for
borrowing in a total amount of EUR 1 billionView entire presentation