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 is 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 fixed in the Stability Programme of Lithuania for 2018.

Limits for year 2018 set by the Parliament of the Republic of Lithuania

Net change in Government debt liabilities	EUR -501.114 mill.
Liabilities assumed by guarantee institutions, which are granted a State guarantee (excluding the amount re-guaranteed by the AAA rated institutions)	EUR 322.6 mill.

Limits for year 2018 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 3 % of GDP
Liabilities of the Agricultural Loan Guarantee Fund	no more than EUR 190.6 mill.
Liabilities of INVEGA (excluding the amount re-guaranteed by the EIF)	no more than EUR 132 mill.

Last updated: 12-07-2018