Standard & Poor's assigned a BBB rating to 10-year Eurobonds placed by Lithuania last week. The rating is in line with country's sovereign rating. The agency commented that the rating balances its commitment to reaching sustainable public finances with limited monetary policy tools as a result of currency board arrangement. Should the country meet the euro adoption criteria, the rating could be raised. Last week Lithuania attracted EUR 500mn on the international financial markets for the term of 10 years, under 3.375% per annum. The FinMin noted that the interest rate is the smallest interest rate paid by Lithuania in the last decade. The ministry attributed the low interest rate to of positive investor reaction to the trends in Lithuanian economy and constructive international financial market. The borrowed money will be used for the funding of the budget's deficit and for the paying off of the earlier debts.
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