The increase is being driven by bank deposit interest rates that are so low that people are looking for safe investments that can produce a better return, according to analysts.
It is estimated that last year, Lithuania raised 25% more debt on the domestic market than in 2014. Although the majority of lenders were professional investors, the numbers of citizens participating also grew.
Currently, Lithuania has the best credit rating in the entire history of the country, so the interest rate on these securities is very low. Lithuania, like other countries borrows money on both domestic and foreign markets to finance state budgets and spending.
To borrow the state issues securities which are purchased by investors, creditors or residents who in this way lend to the state.
LRT
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