According to the data from the Finance Ministry, the change in the domestic state debt was due to an increase in the issuance of SS on the primary market by 4,073.1 million lei at nominal value, the issuance of SS through the electronic platform eVMS.md by 408.6 million lei and the redemption of converted SS in the amount of 1,085.8 million lei.
“After two months of decline, the domestic public debt started to grow again, despite a significant reduction in the volume of redemption of previously issued SS. This was due to the low demand for government securities. In August, the demand for government securities amounted to only 77% of the government securities offered by the Ministry of Finance. At the same time, the sale of government securities – an instrument of domestic borrowings – decreased by 320 million lei during the month and amounted to 3.4 billion lei,” economist Vladimir Golovatiuc said.
Thus, despite the decrease in the sales of government securities, the domestic government debt increased as a result of an even greater reduction in the volume of redemption of previously issued government securities. Over the year, the domestic state debt increased by 4.9 billion lei (11.5%), and over 4 years, i.e. by August 2021 – by 14.5 billion lei, or by 42%, the expert said.
In the first 8 months of 2025, the weighted average interest rate on SS traded at auctions amounted to 8.98%, up by 4.02 p.p. compared to 2024.
