Finance ministry borrows 500m euros to pay off debt

Lithuania borrowed 500 million euros in the international financial market for the term of ten years, reports ELTA.

The country will be the annual interest reaching 3.375 percent. According to the Ministry of Finance, the interest rate is the smallest interest rate paid by Lithuania in the last decade.

The borrowed money will be used for the funding of the budget's deficit and for the paying off of the earlier debts.

The cheapest borrowing in a decade was influenced by the positive attitude to the perspective of Lithuania economy and favourable international environment.

"The current Government of Lithuania is carrying a responsible policy of finance and is striving for the euro introduction in 2015. This is positively reflected in the results of this issue," said Lithuania's Minister of Finance Rimantas Sadzius.