Government plans to borrow approximately €2 billion in 2021

The superministry.
The superministry. Source: Siim Lõvi /ERR

The government will borrow approximately €2 billion this year and the exact figure will be known after the next financial forecast, Undersecretary of the Ministry of Finance Märten Ross said on Monday.

Ross said the amount of loan money borrowed may be smaller than anticipated after the autumn forecast last year.

"Then we were talking about maybe more than €2 billion in loans. Now, at the start of the year, if we look at these developments, we are talking about borrowing up to €2 billion this year," he said.

Chairman of EKRE and former Minister of Finance Martin Helme said the coalition will increase the budget deficit and he thinks the government could use some of the money in reserve rather than taking out more loans.

"After all, we took out a rather large reserve last year, about €3.5 billion in loans. We didn't spend it all. At the end of the year, the country's liquidity buffer was about €2 billion," Helme said.

However, he does not think that all the government's reserves should be used.

"The second question is whether it is reasonable to use all our reserves now. Perhaps it is more reasonable to keep the reserves and finance the additional costs in the form of a loan," he admitted.

Ross said the liquidity buffer is currently about €1.5 billion and there is a desire to keep at least €1 billion in reserves at all times.

In March, the one-year government bond will expire and will be refinanced with a new short-term loan.


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Editor: Helen Wright

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