Lithuanian government borrows €15m

DELFI / Domantas Pipas

Lithuania issued government bonds worth €15 million on Monday.

The state will pay 0.489% interest on average for the bonds that will mature in eight years.

By 1 July, the central government’s debt amounted to €14.969 billion, according to the Ministry of Finance.

The government plans to borrow about €1.7 billion this year. Most of the bonds will be sold to investors in the domestic market.

The Ministry of Finance has earlier announced that the largest part of the funds this year will be used to service older debts. From the planned €1.7 billion, €1.1 billion will be allocated to debt refinancing.

The European Commission predicts that Lithuania’s public debt to GDP ratio in 2016, compared to 2012 when the current government took office, will have grown 1.3%, to 41.1% of GDP.

Lithuania‘s debt next year will rise further to 42.9% of GDP.

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