The state plans to borrow from the domestic market, but not specifically in connection with security or defense, Minister of Finance Jürgen Ligi (Reform) told Eesti Päevaleht (EPL). Further details on the expected government bonds issue will be released next week.
The interview, published Friday, touched on temporary tax rises for increased defense spending and the fairness of taxing everyone in society, even low earners.
EPL suggested Ligi would not support taking a “one-time” security loan.
“We borrow all the time. We are in a situation of necessity, we have to borrow all the time. I never said that borrowing is the devil. It’s just a question of when and for what. Next week, I will present the bond issue at a press conference,” the politician told the paper.
The host asked if he was talking about security bonds. “So, we are planning to borrow from the domestic market. But there is no security label on it,” said Ligi.
ERR asked Ligi to comment on the subject, but he said he did not want to comment before next week’s press conference.
In May, Aivar Sõerd (Reform), a member of the Riigikogu’s Finance Committee, also said money borrowed by the state with bonds to cover the budget deficit would not be earmarked for specific areas, such as defense or social spending.
In June, the Ministry of Finance said it plans to borrow up to €200 million from retail investors.
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