In July, the total public debt decreased by 3 billion lei, amounting to 124.2 billion lei. This was due to the reduction of domestic public debt by 2.3 billion lei and external debt by 0.7 billion lei. However, the fulfillment of obligations on external and internal loans was not in favor of budget expenditures in July.
The government’s net financing in July was minus 3.2 billion lei as a result of the large amount of borrowed funds to be repaid. This had a negative impact on the execution of the state budget – budget expenditures decreased by 570 million lei in July compared to June, and by 1.3 billion lei compared to a year earlier.
On the other hand, since the beginning of the year, the Ministry of Finance reports a positive result, mainly due to external sources. In the first 7 months of 2025, the net external financing of the government amounted to over one billion lei. This is also due to the fact that the fluctuation of the dollar exchange rate reached positive values ($306.3 million). But the balance of external public debt as of the end of July has increased by $371.16 million, or about 9%, since the beginning of 2025.
