Volodymyr Golovatyuk

Three-quarters of the increase in public debt in 2025 is due to the government’s domestic borrowing, Logos Press reports.

Moldova’s new debts overlapped the old ones. And the external public debt increased by a third during the year. And the total debt of the state, thanks to this, has significantly gained weight. The weakening of the national currency, despite the NBM’s efforts to support the exchange rate, certainly made its contribution. But against the background of world financial events, it does not look like such a respectable factor for new borrowings burdening the economy. Although without them we are nowhere.

Monthly summaries of the Ministry of Finance show a decrease in the size of the external public debt – in May it amounted to $4.232 billion and, compared to April, decreased by $123 million or 2.8%. – reports Logos Press.

The share of external and internal borrowings and grants in the state budget of last and this year reached 31%. This is 10% more than on average in 2013-2020. Such statistics is given by the former chairman of the parliamentary commission on economy, budget and finance Volodymyr Golovatyuk, commenting on the results of budget execution for four months of the current year. The report as of April 30, 2025 was released by the Finance Ministry late last week.

The public debt in Moldova is growing at an accelerated rate. It is increasingly secured not by gross production, but by debt securities and the established system of refinancing through foreign aid programs. Supporting the economy and budgetary commitments is increasingly becoming a way to pay off debts.

Moldova’s current account deficit in 2024 increased by 54%, from $1.9 billion in 2023 to $2.9 billion at the end of last year.