BDAR
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Debt Management Instruments

The primary goal of debt management is financing the Government’s borrowing needs at the lowest possible cost and an acceptable level of risk.

Managing the risk of the debt liabilities undertaken by the Government on behalf of the State and the monetary resources of the State, involve the management of exchange rate, interest rate, credit, liquidity (refinancing), and operational risks.

The Government’s net borrowing limit and limits for guarantees are set by the Seimas when it approves the Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for each year. Limits (on the structure of the debt portfolio) for the debt liabilities that the Government undertakes on behalf of the State are set in the Stability Programme of Lithuania for 2022.

Limits for year 2022 set  by the Parliament of the Republic of Lithuania

Net change in Government debt liabilities EUR 1 388,32 mill.
Liabilities assumed by guarantee institutions, which are granted a State guarantee (excluding the amount re-guaranteed by the AAA rated institutions)* EUR 616,26 mill.
State guarantees granted on loans to finance public investment projects and to replenish the working capital of enterprises important for national security (individual guarantees) EUR 195,0 mill.
State guarantees granted on student loans EUR 113,0 mill.
State guarantees granted on loans and debt securities to increase the financial liquidity of businesses (individual guarantees) EUR 300,0 mill.

Limits for year 2022 set by the Government of the Republic of Lithuania

The ratio of short-term debt (by residual maturity) to the total debt liabilities no more than 25 %
The weighted average residual maturity of Central Government debt more than 4 years
The weighted average residual maturity of Central Government debt till re-fixing more than 3.5 years
The ratio of debt with a floating interest rate of the total debt liabilities no more than than 10 %
Debt in Euros, after financial derivatives 100 %
Government-guaranteed debt no more than 5 % of GDP
Liabilities assumed by "Investment and Business Guarantees" Ltd EUR 359,06 mill.
Liabilities assumed by Agricultural Credit Guarantee Fund Ltd EUR 257,2 mill.
Last updated: 13-07-2022