Latvia will probably be in a position to tap international markets for a Eurobond in the second half of next year as it recovers from its deep crisis, Finance Minister Andris Vilks said on Thursday. He said the country's first move to seek market financing since the global financial crisis would probably depend on credit-rating upgrades.
Standard & Poor's upgraded Latvia a week ago to BB+, just one notch short of investment grade. "If the rating improves by one additional notch for example, or by two notches, that means that it is time to consider going to the markets," Vilks told Reuters in an interview.
"It could happen next year, probably, the second half of next year. Probably Latvia will be able to attract the necessary amount then we will be able to restructure our existing loan," he added. Fitch also rates Latvia at BB+ while Moody's rates it at Baa3, just into investment grade.
If positive economic trends continue, Latvia might not need any more money from the 7.5 billion euro ($9.9 billion) bailout that it took at the end of 2008 from the International Monetary Fund and the European Union.
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