According to a report by the Baltic News Service (BNS) on September 16, Latvia issued 500 million euros in 10-year government bonds to the international financial market on the same day, with an annual interest rate of 1.375% (yield of 1.449%). Market demand exceeded supply by 60%, with buyers primarily consisting of investors from Europe (Germany, the United Kingdom, Austria, Scandinavia, and the Baltic region).
The Latvian Minister of Finance expressed satisfaction with the successful issuance of the debt, noting that this is the lowest interest rate on government bonds in the country's history. These funds will primarily be used to repay maturing debt, cover the fiscal deficit, and fund local investment projects. The Finance Minister emphasized that issuing government bonds at a low cost allows for savings that can be directed toward the development of education, healthcare, and national defense.
As of the end of August 2015, Latvia's total national debt stood at 8.1 billion euros, equivalent to 33% of the projected 2015 GDP. Currently, the Latvian government is formulating the 2016 national budget, with the deficit to be capped at 1% of the GDP.