Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Lithuania Bond Sale Would See Strong Demand on Budget, RBS Says

Don't Miss Out —
Follow us on:

Jan. 11 (Bloomberg) -- Lithuania would see strong demand if it sold international bonds because the Baltic nation’s new government has shown it intends to maintain fiscal discipline, Royal Bank of Scotland Plc said.

Lithuania may offer about $500 million of bonds in an as yet undetermined currency to help repay an estimated $2.5 billion of debt that expires this year, according to Mohammed Kazmi, emerging-markets strategist at RBS in London. Giedrius Sniukas, a spokesman at the Finance Ministry in the capital, Vilnius, declined to comment.

“Key risks of political uncertainty and significant fiscal loosening have receded recently in Lithuania, which we think will result in strong demand for the new bond,” Kazmi said today in an e-mailed note. Policies including freezing public-sector wages for a fifth year highlight “the country’s ongoing commitment to fiscal consolidation.”

The four-party coalition government that took office in Lithuania last month has championed a 2013 budget targeting a deficit of 2.5 percent of economic, compared with about 3 percent in 2012. The government last tapped international investors Sept. 19, when it sold 175 million Swiss francs ($191 million) of debt due 2017 with a 2 percent coupon.

The yield on Lithuania’s dollar bond due 2022, which ended last year at a record-low 3.073 percent, was 3.398 percent at 11:19 a.m. today in Vilnius.

There’s a risk of some fiscal loosening in Lithuania in 2014, according to Kazmi.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.