Schema
Eesti Vabariik
The issuer of the securities is Ministry of Finance on behalf of the Republic of Estonia.
Estonian Parliament sets a maximum outstanding amount of debt obligations when it approves the annual budget each year and the Ministry of Finance is allowed to assume short- and long-term debt obligations for the state within the approved limit. In accordance with the regulation of the Government of Republic “Principles of state cash flow management and stabilization reserve management“, debt obligations may be assumed in the form of loans, bonds, overdraft facilities or repo transactions, either domestically or internationally. The maximum term for long-term debt is 50 years. Generally, borrowing needs stem from the need to fund budget deficits or to refinance maturing debt obligations. When there is a borrowing need, the State Treasury evaluates different borrowing options. The choice between taking a loan or issuing bonds depends, among other things, on the size of the funding gap, repayment schedules, „all-in“ costs, and associated financial risks (refinancing risk, interest rate risk). The State Treasury department also manages the financial risks associated with the State’s debt obligations.
Additional information about the financial liabilities of the Republic of Estonia can be found here.
Contacts
Address: Suur-Ameerika 1, 10122 Tallinn
E-mail: info@fin.ee
Webpage: https://www.fin.ee/