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. Last Updated: 07/27/2016

Latvia Postpones Eurobond

Latvia postponed a planned sale of 10- year euro-denominated bonds initially set for this year until 2004, because higher-than-expected revenue means the government does not need the money immediately.

"Budget revenues were ... higher than planned in the first half of the year," Baiba Melnace, a spokeswoman at the Finance Ministry in Riga, said in a telephone interview.

"Interest rates on the local market are very low, making it favorable to borrow locally."

Revenue was 30 million lats ($50 million) more than expected, she said.

Latvia, which had borrowed 125 million lats on the local market as of January, plans to boost local debt by another 127 million lats by the end of this year to finance the budget deficit, planned to reach 3 percent of gross domestic product.

Latvia, one of 10 mostly East European countries joining the European Union next year, must pay 225 million euros ($254 million) of debt coming due in 2004. The country plans to have its budget deficit less than 2 percent of GDP in 2004.

Melnace said the amount to be raised through the sale of euro-denominated bonds, initially intended to be 300 million euros to 400 million euros, may change next year.

Latvia hired Citigroup to manage the sale.