Estonia plans to cover deficit of state budget due to release of bonds

Estonia in the coming days will release 10-year bonds worth about one billion euros, with which it is planned to cover the total state budget deficit, the Estonian National Television Road Company ERR reports. Interest will be determined during the issue.

“In 2024, the state budget is planned with a shortage, and the state will take money for its financing. The issued bonds will cover about half the need for borrowing this year, and, according to preliminary information, the interest of investors in Estonian bonds is still high,” – Said Vice Chancellor of the Ministry of Finance Sven Kirsipuu.

A specialist in public relations of the Ministry of Finance, Irina Satsuta added that it is planned to attract about one billion euros by release, which is enough to cover the state budget deficit for six months.

The last time Estonia issued long -term bonds in June 2023. At that time, bonds were placed at 3.62 percent. The exact volume and interest rate of the new output bonds will be declared during the issue and depend on both market interest rates and the demand of investors.

Since 2020, the long -term bonds of Estonia have been released twice with a total of 3 billion euros. An additional issue will increase the volume of almost 4 billion euros issued by Estonia to almost 4 billion.

Bonds are organized by Barclays, Citigroup and Nordea. The issue will take place in the coming days if the situation on the market allows you to do this.