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In 2015 State Debt Stood at 42.5% of GDP

Date

2016 03 31

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According to the data by the Ministry of Finance, the State debt, after hedge transactions* at the end of 2015 made up EUR 15.815 billion or 42.5% of GDP for 2015 (EUR 37.190 billion), and it was by 0.1 percentage point of GDP lower than projected while drafting the Government Borrowing Programme for the previous year.

“The statistics for 2015 reflect a short-term increase in the debt when the Ministry of Finance accumulated funds for redemption of the previous issues of Government securities. The funds borrowed last October were used to redeem the previous issues of bonds on foreign and domestic markets, and the State debt decreased, accordingly. This decrease will be reflected already in the debt statistics for 2016. We project that at the end of this year the State debt-to-GDP ratio will be lower than the one at the end of the previous year,” Minister of Finance Rimantas Šadžius said.

The State debt, before hedge transactions, at the end of 2015 made up EUR 16.790 billion or 45.1% of GDP.

At the end of 2015 the consolidated central government debt amounted to EUR 15.808 billion, consolidated local government debt – EUR 592.9 million, and the consolidated debt of social security funds – EUR 389.7 million.

At the end of 2015 foreign debt made up EUR 12.372 billion or 73.7% of total State debt. Domestic debt made up EUR 4.419 billion or 26.3% of total State debt.

The long-term debt (EUR 16.347 billion) represented 97.4% of total State debt, short-term debt (EUR 443.5 million) – 2.6%.

The major share of the State debt consisted of outstanding securities – EUR 13.506 billion, loans amounted to EUR 2.812 billion, and saving notes totalled EUR 472.9 million.

In October 2015 on international capital markets Lithuania borrowed EUR 1.5 billion by circulating at once two (10-year and 20-year maturity) Eurobond issues by EUR 750 million each. 1.25% annual interest will be paid on the 10-year maturity Eurobond issue, and it is the lowest borrowing cost in our country’s history. Lithuania will pay 2.125% annual interest on the 20-year maturity (the first of such maturity) Eurobond issue. Lithuania used the funds of these issues to redeem the Eurobond issue of EUR 1 billion with 3.75% annual interest placed on international capital markets in February 2005 and tapped in February 2006.

In 2016 the Government plans to borrow up to EUR 1.7 billion, it is forecasted that at the end of this year the State debt will stand at around 40.9% of GDP.

* - debt indicator used by the European Commission for comparison of the debt of all the European Union countries and assessment of compliance with the Maastricht debt criterion.

 

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