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Lithuania mulls borrowing up to €2bn in capital markets

Lithuania intends to borrow in the international Capital Markets, Finance Minister Vilius Šapoka said, in addition to 1.5-billion-euro loans secured from international financial institutions.

According to Šapoka, the government mulls raising between 0.5 and 2 billion euros via Eurobond. The funds would be used to mitigate the effects of the coronavirus-induced economic downturn.

“Borrowing plans will certainly depend on both the situation in the markets and the situation in Lithuania, our success in handling the effects of the coronavirus crisis,” the minister told BNS.

The European Investment Bank (EIB) will lend Lithuania 700 million euros, the Finance Ministry said on Monday, while the Nordic Investment Bank (NIB) and the Council of Europe Development Bank (CEB) will extend loans of 400 million euros each.

The final term of the new loan issued by EIB and its interest rate would depend on the situation in the capital markets, the minister said, adding that the loan from NIB carried an interest rate of 0.35 percentage points plus 6-month Euribor.

In mid-March, the Lithuanian government adopted a package of measures to stimulate the economy and mitigate the economic fallout of the coronavirus, which gives the government a mandate to borrow additional 5 billion euros in order to ensure the liquidity of the state treasury.

LRT.LT



This post first appeared on The Baltic Word, please read the originial post: here

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Lithuania mulls borrowing up to €2bn in capital markets

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