Latvian government securities are issued to ensure financing of the government budget deficit and re-financing of the government debt, as well as liquidity of the government finances. Currently, the government securities are the main source of the government domestic funding.
The first issue of the government securities took place at the end of 1993. In the following years, as government financing requirements grew and the domestic securities market developed, investors were offered longer-term securities. Currently there are short-term T-bills outstanding with the original term-to-maturity of six and twelve months, medium term T-bonds with the original term-to-maturity of three and five years, as well as long-term bonds with the original term-to-maturity of ten and eleven years.