Latvia Stability Programme Report
DOMESTIC MARKET CONTINUES TO PERFORM STRONGLY IN 2022
Domestic market is operational with regular government debt securities auctions, i.e. re-
openings of outstanding XS ISIN bonds. Demand is supportive also in the current of
geopolitical situation ensuring the largest ever borrowing volumes in domestic market
Domestic Auctions via Primary Dealer system
(millions,
EUR)
2.5
300
250
255
260
200
200
154
151
157
135
116
122
86
88
92
73
59
2.0
Average weighted yields at domestic auctions as on
27 July, 2022, %
Eurobond
2028 TAP's
2.077
1.870 ⚫ 2.040
Eurobond
2026 TAP's
1.593
1.543
Eurobond
1.5
129
2029 TAP's
109
98
1.019
81
1.0
69
10
0.919
21
Eurobond
2031 TAP's
0.5
Millions
150
100 79
50
0
34
35
TAP2028
TAP2029
TAP2029
TAP2031
TAP2031
TAP2025
TAP2025
TAP2029
TAP2031
TAP2025
TAP2024
TAP2025
TAP2026
TAP2026
TAP2025
TAP2026
TAP2024
TAP2026
TAP2028
TAP2025
TAP2024
TAP2026
TAP2028
0.0
Eurobond
2024 TAP's
Eurobond
2025 TAP's
08.2022
07.2022
04.2022
05.2022
06.2022
03.2022
-0.5
-0.253
02.2021
03.2021
05.2021
01.2021
04.2021
06.2021
0.034
295
-0.179
09.2021
10.2021
11.2021
01.2022
02.2022
07.2021
08.2021
12.2021
Nov Dec Feb
Mar
2021
Apr
2022
May
June
JulyAug
Sept Oct
Source: The Treasury
Bids total, million EUR Amount sold, million EUR
•
•
•
32
Primary dealers group
Primary dealer system in Latvia operates since 11
February 2013.
Enlargement of Primary dealer group took place on 19
January 2021 by assigning the dealer status to Erste
Group Bank
There are five banks in the group:
1. Citadele banka AS
2. Erste Group Bank AG
3. Luminor Bank AS
4. SEB bankas
5. Swedbank AS
Source: The Treasury
Government securities in the domestic market
On 14th of October 2020 for the first time GMTN
programme XS ISIN Eurobonds TAPS were offered in
auction in domestic market only (via Primary dealers).
Since October 2020 only re-openings of outstanding XS
ISIN bonds under GMTN programme are offered in
domestic auctions
The gross borrowing volume in domestic market as of 22
August 2022 has reached historically largest volume for
domestic maket - EUR 1,12 billion (in nominal value)
The outstanding volume of LV ISIN securities (issued
under domestic legislation) is EUR 1.05 billion of which
86.3% is 5-year bonds (original maturity)View entire presentation