Latvia could borrow USD 1bn in 2013.

By bne IntelliNews July 4, 2013

Finance minister Andris Vilks told LETA that if the conditions on international debt markets are favourable, Latvia could borrow USD 1bn by the end of the year. Although currently the government can not afford to make additional borrowing for up to fifteen months, the situation could be favourable in Q3/13 or Q4/13, Vilks added.

In December 2012, FinMin’s spokesman Aleksis Jarockis told the press that Latvia plans to borrow USD 4bn on international markets in 2013-2014 in order to refinance government debt. Next two years will see the repayment of the biggest sums of the anti-crisis support loan to EC, he added. Jarockis also estimated that by fully repaying IMF part of the loan ahead of schedule this year Latvia saved about EUR 284mn.

In December 2012, Latvia successfully placed USD 1.25bn worth of 7-year Eurobonds at the record-low 2.889%. Some EUR 716mn were repaid to IMF from the proceeds of the Eurobond issue. The country borrowed a total of LVL 820.2mn (EUR 1.17mn) from IMF and EUR 2.9bn from EC in late 2008. 

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