EU – Baltic States, Financial Services, Investments, Latvia

Similar meetings are also planned in Europe, and Vilks will return to Latvia only next week.

The State Treasury is considering issuing eurobonds this year, the exact time of the issue and the conditions thereof will be set depending on the situation on the financial market.

This year, Latvia could borrow USD 500 million to USD 1 billion on international financial markets, Vilks told LETA previously.

It is possible that the country will attempt to borrow twice, however, the issue of bonds will be determined by their potential price, which is still unclear. The borrowing will depend on the specific situation and the opportunity to gain an appropriate price.

Vilks pointed out that Latvia will have to start paying back significant amounts in 2014 and 2015, whilst this year – around LVL 300 million. The State Treasury has sufficient means to lend this sum without having to borrow it on financial markets.

If Latvia decides to issue the bonds, the United States will be the initial market, followed by Europe and, possibly, Asia, explained the minister.

Last June Latvia successfully returned to international markets by issuing 10-year eurobonds worth USD 500 million (LVL 260 million). Interest was set at 5.25%, compared to 5.5% interest on the previous eurobond issue in March 2008.

Investors showed major interest in Latvian eurobonds, the total amount of bids exceeded the offer ninefold.