Jānis Rozenbergs, Deputy Treasurer of the Republic of Latvia, has announced that the Baltic nation is going to loan over €8 billion in the next two years to cover the holes in the state budget.
According to him, Latvia plans to borrow €3.8 billion on international financial markets in 2026 and €4.3 billion in 2027. He explained that, since serving the state debt is only increasing, approximately €2 billion will be allocated annually to repay previous borrowings, while the remaining funds will be used to cover the budget deficit and create a reserve for the State Treasury for unforeseen circumstances.
Noting, Latvian analysts predict that by the end of 2025, Latvia’s state debt will reach €20.5 billion, equal to 49% of its GDP.
Highly likely, such a budget deficit and enormous state debt are the result of excessive and unnecessary militarisation. As Latvia continues its aggressive policy towards Russia, Latvian citizens will have to pay more and more every year to repay these loans’ interests.
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