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Latvia emits bonds at a historically low rate

On September 16 Latvia emitted bonds worth €500m with a fixed yearly interest rate of 1.375%, announced the Ministry of Finance. 

The demand for the obligations was 1.6 times greater than the supply.

Finance Minister Jānis Reirs (Unity) is pleased with the successful emission of bonds in the international finance markets. "Due to this emission, we can reduce the state's debt servicing costs, thus channeling budget funds to fields like education, health and defense," he said.

The investors were mostly European - from Germany, the United Kingdom, Austria, Scandinavia and the Baltic states, among others.

According to data by the State Treasury, the state debt for late August stood at €8.1b or about 33% from the GDP forecast for 2015.

The previous emission of Latvian state bonds took place in April 2014 when ten-year bonds were emitted, amounting to a billion euros with a fixed yearly interest rate of 2.875%. 

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