MNI: Finland's 2021 Borrowing Depends On EU Funds

The total size of Finland's borrowing this year could still be affected by the allocation of European recovery funds to the country, the deputy director, head of funding at the State Treasury told MNI.

"The current gross borrowing requirement for 2021 is approximately EUR39 billion, reflecting the latest supplementary budget. Remains to be seen if and to what extent further supplementary budgets would be affected by Recovery Fund grants to member states," Anu Sammallahti said in response to emailed questions.

The country's current debt strategy in euro benchmarks is to issue new 10- and 5-year bonds annually in addition to a longer maturity, which in 2021 was 30 years. Finland also aims to make a benchmark dollar issuance each year, but this is subject to market conditions and competitive funding costs. The country has no plans to issue a 50-year bond, Sammallahti said.