State “airBaltic” bonds worth no more than EUR 100 million could be purchased

Asheraden asked to wait for tomorrow’s government meeting, when this issue will be discussed.

The Saeima recently adopted the government-directed amendments to the “Law on the Budget and Financial Management”, with which the Minister of Finance is given the authority to use state budget funds with the support of the Saeima and the government for the purchase of fixed income securities of capital companies in which the state has a decisive influence.

Transport Minister Kaspars Briškens (P) has noted that the adopted changes will enable the state to participate in the bond issue of the Latvian national airline “airBaltic” alongside and under the same conditions as international private investors.

On the other hand, Finance Minister Asheraden emphasized that such purchase of bonds of state capital companies, which the state could make on the same terms as private investors, does not create pressure on the state budget deficit.

At the same time, Asheraden pointed out that the purchase of such bonds can only be financed by borrowing, so this would increase the amount of borrowed money.