"I believe that it will be subscribed to several times over," Priisalm told ETV news broadcast "Aktuaalne kaamera" on Wednesday night. "What Estonia is currently doing is a benchmark issuance of bonds, as thus far, Estonia has not had any long-term public debts, and I believe that in the in the case of such an issuance, it should have a decent volume to ensure that it has sufficient liquidity later. Bondholders don't really want bonds that have no liquidity. So in this case I won't worry about the volume of the Estonian state's bonds."

There is great interest in Estonian bonds, the investment manager said.

"There are a lot of investors who have very strict restrictions regarding where they can even invest their money, and they must invest it in government bonds, and the bonds of governments with high ratings," he explained. "Estonian debt suits such portfolios very well. Following Estonia's example, these may be guarantee funds, deposit insurance funds, the Unemployment Insurance Fund, insurance companies — institutions like that. There are enough institutions in the world who could buy debt like that."

According to Priisalm, the interest rate on Estonian bonds will remain around 0 percent.

"Whether it's 0.2 percent above or below zero is up to the market to determine," he said. "Comparing with Ireland, which has a similar credit rating, their ten-year debt is currently being traded at 0.1 percent interest. France, whose credit rating is one degree better, has an interest rate of zero on its ten-year debt."

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