Photo by photohobo/magnific
At the same time, government data show that in May there was a slight decrease in the external public debt, which stood at 85.2 billion lei in national terms. Due to a reduction in net external financing and the strengthening of the U.S. dollar, the amount of external debt denominated in dollars stood at $4.917 billion in May (down $45 million).
Since the beginning of 2026, the government has borrowed more than 10.3 billion lei, including 5.9 billion lei on the domestic market and 4.4 billion lei on the foreign market. Since the beginning of the year, the Ministry of Finance’s domestic borrowing through the issuance of government securities has grown at a record pace, increasing by nearly 5.9 billion lei in just five months.
Domestic debt costs the budget significantly more than external debt. The weighted average interest rate on the domestic market remains at around 9.3–9.5% per annum, which has caused the government’s interest payment expenses to rise significantly. According to the Ministry of Finance, domestic public debt has reached 57.9 billion lei.
Under the budget law, the government plans to actively borrow funds on domestic and foreign markets in 2026, which will increase total public debt by 24 billion lei by the end of the year.
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