“Given the state of emergency, it is important that we have the means to finance all measures to stimulate the economy and support the population," said Finance Minister Janis Reirs.
"It is important to overcome the crisis caused by COVID-19 together so that we can return to our daily routine in due course. In this deal, we have leveraged long-term resources with attractive borrowing rates, ensuring low and predictable debt servicing costs in the long term," said Reirs.
Investors' aggregate demand for bonds exceeded EUR 700 million.
A day earlier on March 25, the State Treasury said securities with a total nominal value of EUR 32 million were sold in a competitive multi-price auction. The total demand reached EUR 60 million and exceeded the sold amount 1.88 times.
T-Bonds due on 20 March, 2022 with the total nominal value of 2 million EUR were sold in a non-competitive fixed rate auction.
The financial institution Altum and the Treasury are also working with the Nordic Investment Bank, where an additional EUR 500 million has been set aside for business support. Additionally, EUR 200 million in additional funding is being negotiated with the Council of Europe Development Bank.
“We will also reform funds that are not yet operational. Here we see a potential reorganization of EUR 280 to 400 million," Reirs said, describing Latvia as being "relatively well capitalized at the moment."