Analytics, Budget, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Sunday, 12.07.2020, 13:18

Latvia's government debt might grow to EUR 11.65 bn by 2020-end

BC, Riga, 14.10.2019.Print version
By the end of 2020, Latvia's government debt might grow to EUR 11.65 bn, according to the Finance Ministry's review of government debt trends, 2019-2022, writes LETA.

According to provisional data released by the Treasury, Latvia's government debt stood at EUR 10.7 bn at the end of August 2019, having expanded by EUR 500 mln from the end of 2018.

At present, external debt accounts for 85% of Latvia's entire government debt, with government bonds issued on international financial markets making up 78% of Latvia's external debt.

Between September 2019 and December 2022, Latvia is expected to refinance around EUR 3.3 bn worth of government debt. Maturing government bonds make up the bulk of the debt scheduled for refinancing in this period. 

According to the Finance Ministry, Latvia's government debt is expected to increase to EUR 11.65 bn, or 35% of GDP, by the end of 2020. This year, Latvia's government debt is EUR 10.84 bn, or 34% of GDP.

The ministry explained that government debt will increase next year as Latvia has to borrow to ensure general financing needs in 2020, including retiring EUR 550 mln worth of eurobonds at the end of 2020 and EUR 1 bn worth of eurobonds at the beginning of 2021. 

After the debt repayment planned in 2020 and 2021, Latvia's government debt is expected to decreased and stabilize at 32% of GDP. 

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