Latvia: State debt to remain below 50% of GDP: State Treasury

Latvia’s state debt will remain below 50% of GDP in the coming years, Kaspars Abolins, head of the Latvian State Treasury, assured, LETA reports. Currently, the state debt stands at slightly over EUR 18bn, which is around 44% of GDP and one of the lowest in the EU, Abolins noted. The State Treasury expects the debt to rise to 49% of GDP over the coming years. Abolins said that interest payments had increased significantly. Debt service costs would rise by around EUR 150mn in both 2024 and 2025. At the same time, Latvia’s state debt includes long-term bonds with fixed rates, Abolins added.