National Debt Grows: How Much Does Latvia Owe Now 0 8

According to the State Treasury of Latvia, by the end of 2025, the national debt amounted to 46.9% of GDP — this is 0.1 percentage points higher than the previous year. In monetary terms, it is about 20.5 billion euros, which is 1.6 billion more than in 2024.

The increase is attributed to the necessity of covering the budget deficit, including due to increased defense spending. At the same time, the debt level still remains one of the lowest in the EU.

The main part of the borrowings consists of eurobonds (88% of the debt), placed on international markets. In 2025, Latvia raised funds twice: in the spring — for 1 billion euros, and in the autumn — for 1.25 billion. Investor demand significantly exceeded supply, which allowed borrowing under relatively favorable conditions.

Additionally, the government raised about 950 million euros through bond auctions, in which large banks and financial institutions from Europe participated.

Investor interest in Latvian securities remains high — demand at certain auctions exceeded supply several times, which helps keep interest rates at a relatively moderate level.