Finland pays lowest interest rates in Europe

For the first time in history Finland has issued a bond with an interest rate below the German level. The interest rate that Finland is to pay on a reference loan of EUR 5 billion that launched last week will have a return interest rate lower than any other European country which traditionally was Germany’s claim to fame. The rate for a five year loan between Finland and Germany has been a small difference but a favorable one for Germany in the past; however, good Finish state finances have been the key in their low interest rate success. Finland’s state debt is among the lowest in Europe which accounts for 45% of the nation’s GDP. The relative surplus of state finances is 2.3% of GDP which is the highest in the Euro zone. Although Finish bonds have excellent liquidity, investors from outside Europe wanting to invest in the euro zone still find it easier to invest in the bonds of a larger country like Germany, France, or Italy, which account for 70% of the total. More than 80% of the state’s EUR 60 million in debt is now in the hands of foreign investors making it difficult for Finland to attacked investments. I think that Finland should try to obtain more tourist attractions which will give the country more popularity and possibly attracted more foreign investors for their Euro zone. ( http://www.hs.fi/english/article/Finland+pays+lowest+interest+rates+in+Europe-+public+finances+in+good+shape/1101979644900)

[Picture of Finish euro]