Portrait of an Ascending Sovereign Credit
Medium Term Funding Requirement and Borrowing Strategy
Borrowings in international capital markets will continue to 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)
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
(domestic and external)
Maintain a reserve
of resources for
funding for Covid-
19 mitigation and
economic support
measures
•
.
Borrowing Instruments (ACTUAL scenario)
Benchmark issuances in international capital markets
Regular GMTN programme Eurobonds TAP auctions in domestic market (via
Primary dealers)
Alternative Instruments
Possible loan under EU/ RRF facility
Issuance in domestic market under LV ISIN
Borrowing opportunities from international financial institutions
Short-term loans from commercial banks
Private Placement bond issuance
Issuance in niche markets, USD
Central Government financing estimation
(ACTUAL scenario 2021-2023, EUR million)
31-October-2021
2021
Jan-Oct | Nov-Dec
2021 2022
2023
Central government
budget balance, net
lending and other
-996
-1 804
-2 800 -2 013
-579
flows
Outstanding central
government debt
redemption
Of which:
-1 413
-1
-1 414
-708
-1 593
Domestic debt repayment
-91
-1
-92
-624
External debt repayment
-1 322
-1
-1 322
-83
-519
-1 074
Total
-2 409
-1 805
-4 214
-2 720
-2 173
Gross borrowing
2 612
874
3 486
2 450
2 100
Of which:
International issuance
1 750
500
2 250
1 800
1 500
Note: Indicative in the planned period, the estimated borrowing volume is based on a
number of contingencies, subject to Covid-19 fiscal impact and government decisions on
measures for mitigation of spread of Covid-19 and support for the economy
The borrowing volume could change due to Covid-19 negative fiscal impact and necessity to provide financing for additional
Covid-19 mitigation and support measures, subject to further pandemic development and government decisions
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