Latvia Economic and Defence Update
FLEXIBILITY IS EMBEDDED IN LATVIA`S FUNDING STRATEGY
Main funding instruments are government debt securities issued in the international and domestic capital market
2 000
1 800
Debt redemption profile
(million EUR)
Power of the funding strategy lies within:
✓ Flexibility in choice of timing of issuance
✓ Flexibility in choice of currency
✓ Flexibility in tenors
✓ Flexibility to combine instruments and other
available alternatives
✓ Maintained comfortable liquidity buffer
392
1 600
1 400
1 200
1 000
112
224
529
427
1 500
800
1000
500
145
1 250
1 250
600
500
1 000
1 000
1 000
400
850
850
610
600
200
410
320
300
177
191
208
0
2023
Mar-Dec
2024
2025
2026
2027
2028
2029
2030
2031
2032-
2035
2036
2037-
2046
2047
2048-
2049
2050
■Domestic securities (LV ISIN)
Source: The Treasury, on February 28, 2023
Other external debt liabilities
Eurobonds (XS ISIN)
Eurobond (XS ISIN) TAPS in domestic market
Estimated central government borrowing volumes in 2022-2024
(including international and domestic market)
Actual
2022
Actual
Plan
Jan-Feb 2023 Mar-Dec 2023
Plan
2024
Gross Borrowing
2.2 bn EUR
0.9 bn EUR
2.4 bn EUR
2.4 bn EUR
volumes
Cash buffer
3.9
6.0
(% of GDP)
34
Source: The Treasury, March 2023
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 pricesView entire presentation