Latvia: State Treasury plans to borrow at least EUR 3bn annually

The Latvian state will have to borrow at least EUR 3bn annually for the next four years, Kaspars Abolins, head of the State Treasury, announced, LETA reports. He said that the state needed to refinance earlier Eurobonds and finance the state budget deficit and loans to local governments. The plan was to raise the money through various instruments, with bond issues on international financial markets to account for around EUR 2bn annually. Loans from international financial institutions could amount to EUR 200mn, and the remainder could be raised through auctions, Abolins suggested. The actual borrowing requirement will depend on the budget deficit and tax revenues, he added.