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Domestic government debt turned to growth

In September, the government's domestic borrowing returned to a growth trajectory and "sponsored" the budget, according to Logos Press.
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Domestic government debt turned to growth

According to the Finance Ministry, the domestic public debt in nominal value increased by 3,898.36 million lei (8.9 per cent) to 47,859.54 million lei in the first nine months of the year, compared to the beginning of the year.

The change in the domestic public debt was due to the increase in the issuance of SS on the primary market by 4,560.9 million lei at nominal value and in the issuance of SS through the electronic platform eVMS.md by 423.3 million lei. The fall in demand and the redemption of converted SS in the amount of 1,085.8 million lei reduced the amount of net borrowings. In the first 9 months of 2025, the weighted average interest rate on SS traded at auctions amounted to 8.99%.

If in summer the domestic government debt was decreasing due to the redemption of previously issued government securities, in September the opposite picture was observed. Revenues from the sale of government securities exceeded the amount of funds required for repayment, which will allow to finance budget expenditures.

At the end of September, the domestic state debt amounted to 47.9 billion lei against 47.4 billion lei at the end of August. The monthly increase is by 500 million lei, which is the difference between the sold volume of SS for 4.5 billion lei and the redeemed volume for 4 billion lei.

On October 6-15, the Finance Ministry announced the opening of a new subscription period for SS available through an online platform. Within this round, individuals will be able to invest in government bonds with maturities of 2 years, with an annual interest rate of 6.80%, and 3 years, with an interest rate of 7%.


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