It was reported last week that the government was planning to tap international markets for funds.
"Looking at primary market participants' risk appetite, it is a good and favorable time for borrowing. Demand for debt securities could be close to what it was last December, when the Latvian government placed Eurobonds successfully and very cheaply," it quoted Vytautas Ašaka, the head of capital markets at SEB Bankas, as saying.
Analysts say that given the favorable situation in the market, the government this year could borrow in US dollars for a ten-year period at a coupon rate of around 3.5 percent. Lithuania's Eurobond due next March paid 4.5 percent annual interest.
The government in March is to redeem its 1-billion-euro Eurobond issue, which was placed in 2003 and reopened in 2004. Also, a domestic bond issue worth more than 500 million litas (EUR 145m) falls due on January 24.
