The domestic government debt owes its reduction to the dynamics of servicing the government’s obligations to repurchase previously issued securities. The course taken by the Ministry of Finance to reduce the yields of newly issued government securities is yielding results. The market reacts, among other things, by cooling demand, despite the growth of sales on the primary market.
The minimum state debt at the beginning of 2025 has not been reached yet, when the balance of domestic borrowings amounted to about 44 billion lei. According to the situation as of July 31, 2025, the Ministry of Finance records a total increase of 2, 244 billion lei in nominal value of the domestic public debt compared to the beginning of the year. This means that the policy of demand cooling will continue.
The change in the amount of the domestic public debt at the beginning of the year was due to the increase in the issuance of SS on the primary market by 2.929 billion lei at nominal value, the issuance of SS through the electronic platform eVMS.md by 400.6 million lei and the redemption of converted SS in the amount of 1.086 billion lei.
During 7 months of 2025, the weighted average interest rate on SS traded at auctions amounted to 8.97% (by types of SS: 91 days – 3.02%, 182 days – 8.69%, 364 days – 9.47%, 1 year – 8.00%, 2 years – 7.60%, 3 years – 7.40%, 5 years – 8.50%, 7 years – 8.96% and 10 years – 8.0%), which is 4.01 p.p. higher compared to 2024, the Ministry of Finance said, reports the Ministry of Finance.
