In addition to the €1.5 billion borrowed in bonds, the state may need to borrow more, said Märten Ross, Undersecretary for Financial Policy and Foreign Relations of the Ministry of Finance. He also acknowledged that estimates on how rapidly the economy will recover are uncertain.
€1.5 billion is a remarkable loan in Estonian conditions. It comes as no surprise that there are questions about the possible investments that could be made with borrowed money, as the Estonia theater once was.
The Ministry of Finance has said that the loan was taken to clear any possible deficits in the state budget.
"All budgetary expenses are important and investments into the future, whether short-term or long-term. In the given context, this financing is meant to cover general deficits, there are no other hooks to it," Ross said.
Ross said that there will be a return to loan discussions this year. But the necessary amounts and recovery of economy are still factors that are hard to predict.
"It is still June. It is too early to make estimations. In the second half of the year, if we were to think about our next loan, we'll have to consider the coming years as well," Ross said.
While the bonds have become a hot topic, it is still important to diversify channels of lending. It is also possible to acquire funds from international institutions.
"One of the factors of a succesful loan is that investors understand clearly why the state is reacting this way. There was no surprise or nothing extraordinary about it. It didn't raise any questions about the long-term trust of our budgetary policy, for example," Ross concluded.
Editor: Kristjan Kallaste