The state could buy these bonds together with private investors, under the same conditions as private investors, Brishken said. Bond investments of this type are subject to market rules and European Union (EU) state aid conditions.
Briškens explained that the government decided to participate in the issue of bonds worth up to 136 million euros, because the economic contribution from the interest payments, which the state would receive in the same amount as private investors , clearly visible, moreover. significantly promote the development of the capital market of Latvia.
“The state would be involved not only as an investor in the financial sector, but also in strategically important state-owned enterprises,” said Brishken.
The minister noted that the final decision must be made in the Saeima.
On Monday, Finance Minister Arvils Asheradens (JV) admitted after the coalition meeting that “AirBaltic” state bonds worth more than 100 million euros could not be purchased.
It has already been reported that the Saeima recently adopted government-led amendments to the “Law on Budget and Financial Management”, which authorizes the Minister of Finance 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 definite influence.
Minister of Transport Kaspars Briškens (P) has noted that the adopted changes will allow the state to participate in the bond issue of the Latvian national airline “AirBaltic” together with and under the same conditions as cargo -international private investment.
On the other hand, the Minister of Finance Arvils Asheradens (JV) has emphasized that the purchase of bonds of state capital companies, which the state could do on the same terms as private investors, is not creating pressure on the state budget deficit. At the same time, Asheraden pointed out that the purchase of such bonds can only be financed with a loan, so this would increase the amount of money borrowed.
It has already been reported that in July 2024, the maturity date of the 200 million euro bonds of the Latvian national airline “AirBaltic” will expire, so the airline is looking for financing from the out to refinance the bonds, and the company also plans to attract. additional funding in the amount of approximately 100 million euros.
“The airline intends not only to refinance 200 million euros, but also to attract an additional 100 million euros, to improve the cash balance and finance other capital investments related to increasing the capacity of the company,” the airline’s 2023 annual report explained.
The audited turnover of “airBaltic” last year was 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, compared to the loss of the previous year.
The Latvian state owns 97.97% of “AirBaltic” shares, while “Aircraft Leasing 1” is owned by financial investor, Danish businessman Lars Tūsen – 2.03%.
2024-04-30 19:35:51
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