“It is irrational to raise the whole sum in spring since some funds will be necessary in the beginning of the year and some will be needed in fall hence there could actually be two bond issues next year,” Gediminas Norkūnas, deputy director of Treasury Department at the Finance Ministry, told the daily.
The strategic goal, same as before, was to raise money in euros, he said adding, however, that the borrowing currency was actually determined right before the launch of the issue depending on the market environment.
“For example, now it would be more advantageous financially to borrow in US dollars and hedge against currency risk than to raise money in euros. However, it is unclear what the situation on the market could be in a couple of months,” Norkūnas said.
He added that euro- or US dollar-denominated new bond issues were very difficult to place if they did not exceeded 500 million euros or US dollars. In that case the debt authorities should consider other currencies or private placements to specific investors, he said.
