Government borrowing in 2014 and debt projections

The projected general government debt and borrowing in 2014 and 2015 will be influenced by the Government’s strategic goal to prefund in advance for the Eurobond redemption to reduce refinancing risk. However, there remains an option for the Government to select another measure for refinancing risk mitigation. A USD 1.5 billion Eurobond issue matures in January 2015 and a EUR 1 billion Eurobond issue matures in February 2016. In 2014 the Government, excluding the prefunding requirement, plans to borrow LTL 6.9 billion. Taking into account the prefunding in the amount of LTL 3.5 billion, the Government will borrow up to LTL 10.4 billion in total in 2014, of which LTL 4.2 bn in domestic market, LTL 5.6 bn in foreign capital markets and LTL 0.6 bn from international finance institutions (EIB, CEB and NIB) for investment projects.

The projected general government debt for 2014 (the prefunding of LTL 3.5 billion excluded) is expected to comprise 39.3 % of GDP. The general government debt is expected to represent 42.1 % of GDP (the prefunding included). The projected general government debt for 2015 is expected 37.9% GDP (prefunding excluded) or 40.5% GDP (prefunding included). The debt projection for 2016 – 35.3% GDP.

Last updated: 31-08-2015