PM: Bond sale returns Latvia to international markets

RIGA – Latvian Prime Minister Valdis Dombrovskis (Unity) is pleased with the successful issue of five-year bonds worth $1 billion and with Latvia's return to the international markets.

In an interview with the LNT television this morning, Dombrovskis said that the successful bond sale proved that Latvia was capable of making a comeback on the global markets. "What I know for certain right now is that the money for bonds will be used to cover budget deficit," PM added.

As reported, on Tuesday [Feb. 14] Latvia raised $1 billion in a five-year bond issue, the Finance Ministry informed LETA.

The annual interest rate of 5.25 percent is higher than the government had originally planned; the rate of return is at 5.375 percent, the Finance Ministrystates.

The bond issue was organized based on investors' interest in Latvian bonds and in accordance with the government's borrowing strategy for refinancing the international loan program.