Latvia Economic and Fiscal Outlook

32 FUNDING INSTRUMENTS ARE CUSTOMIZED TO ACTUAL SITUATION Demand in the domestic auctions is supportive in 2022 ensuring the largest ever borrowing volumes In 2022 the emphasis has been on the domestic market by borrowing largest ever volumes in relatively short period (millions, EUR) Domestic market continues to perform strongly in domestic auctions (BIDS/Sold amount ratio) 1400 1200 1000 800 680 622 600 422 330 400 150 200 0 -200 2017 2018 4.0 1160 3.5 3.0 2.5 1.84 2.0 1.5 1.0 2019 2020 2021 2022 0.5 (26 Sept) 0.0 ■Gross issuance in domestic market Feb I Mar Russia invasion of Ukraine 1.96 3.67 1.68 ■Net issuance in domestic market Source: The Treasury as of 26.09.2022. Options of new loans from international financial institutions remain available For COVID-19 related needs in 2020/2021 Latvia used international financial institutions facilities: Nordic Investment bank loan in 2020 for the funding of extraordinary government expenditure in order to mitigate the impact of the Covid-19 epidemic in amount of EUR 500 million. The loan is fully disbursed ■ EU SURE facility - the total amount of SURE support available for Latvia was EUR 305.2 million. As of today SURE loan is fully disbursed. NOTE: SURE - EU coordinated response to the Covid-19 for temporary support to mitigate unemployment risks in an emergency Source: The Treasury as of 26.09.2022. ☐ Apr May June July Aug Sept 2022 Primary dealers group and auctions Primary dealer system in Latvia operates since 11 February 2013 Enlargement of Primary dealer group took place on 19 January 2021 when Erste Group Bank joined Citadele banka AS, Luminor Bank AS, SEB bankas, Swedbank AS ■ On 14 October 2020 for the first time GMTN programme XS ISIN Eurobonds TAPS were offered in auction in domestic market only (via Primary dealers) ■ The Treasury holds regular auctions and offers tenors to address investor demand

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