Latvia Stability Programme Report
MEDIUM TERM FUNDING REQUIREMENT AND BORROWING STRATEGY
Main funding instruments are government debt securities in the international and domestic
capital markets. Domestic market plays important role and the borrowing volumes via auctions
have been increased over the last years
Medium Term Borrowing Strategy
Goal
Principles
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)
Balance between risks and costs
Consistency and transparency to
markets
General Financing Requirement
Central Government Budget Balance
Net Lending
Other Flows
at the Treasury`s Accounts
Outstanding Central Government
Debt Redemptions
Borrowing Instruments
Benchmark issuances in the international
capital markets
Regular GMTN programme XS ISIN
Eurobonds TAP auctions in domestic market
(via Primary dealers)
Other Possible Instruments
Borrowing opportunities from international
financial institutions and EU loan facilities
(RRF facility, SURE)
Issuance of LV ISIN (under local legislation)
Short-term loans from commercial banks
Private Placements (Bonds under GMTN)
Issuance in niche markets and USD
33
Central Government Financing Estimation 2022-2024
from 1.0
to 1.7
Aug - Dec
(forecast,
indicative)
1.0
2022
Jan - Jul
(actual)
(EUR billion)
2.9
2.8
2023
2024
The estimated gross borrowing volume is
indicative, subject to actual state budget
execution and may change due to number of
contingencies and external factors, for
example:
•
•
additional financing requirement arising from the
geopolitical situation and measures to strengthen
national security of Latvia
support for the economy and society to reduce
the negative impact of increase in energy prices
Covid-19 fiscal impact (i.e. possible government
decisions on measures for mitigation of spread of
Covid-19)View entire presentation