In the State budget Law of 2009 year is estimated that the debt of the central government at the end of the current year should be 5 billion Ls, that is 42% of the gross domestic product (GDP), but this sum represent only nominal value without the loan interest, the loan of the municipalities and the state bails. The Latvian economy in this year II quarter diminished for 19,6 %. In the results of VAT rate increasing to 21% the money was drawn out of the state economy, thus obstructing its development. After such events it is necessary to think about how the situation should be improved by the using of another means. There is no doubt that the management of the state debt is the more actual issue. In the management of the state debt is to define the management of the state debt portfolio and the management of the state loans. The goal of the management of the state debt portfolio is to govern the financial risks of the state debt portfolio. The goal of the management of the state loans is to ensure the required financial resources and its liquidity for financing of the state budget fiscal deficit and for the state debt refinancing