Moldova's national debt reached a new historical maximum, exceeding the amount of 23.42 billion lei by the end of February.

Moldova's national debt reached a new historical maximum, exceeding the amount of 23.42 billion lei by the end of February.

In particular, according to the Ministry of Finance, the internal debt of Moldova on February 28 amounted to 23 billion 421.3 million lei, increasing from the beginning of this year by 362.7 million lei (+ 1.6%). The previous record figure of Moldova’s domestic public debt was registered at the end of January 2019, when it amounted to 23 billion 203.08 million lei. The growth of domestic public debt in January-February 2019 was due to an increase in the issue of government securities in the primary market by 362.7 million lei. In particular, as of the end of February 2019, the debt on government securities issued in the primary market amounted to about 8 billion 276.69 million lei, which is 362.7 million lei more than at the end of 2018. At its the share accounted for 35.3% of the total domestic debt. At the same time, the debt on bonds issued for the fulfillment by the Ministry of Finance of payment obligations arising from state guarantees of November 17, 2014 and April 1, 2015, at the end of February 2019, amounted to 13 billion 081.2 million lei, unchanged, in comparison with the situation at the end of 2018. It accounted for 55.9% of the total amount of Moldova’s domestic public debt at the end of November 2018. The debt on converted GS at the end of February 2019 amounted to 2 billion 063.4 million lei, as well as as of the end of 2018 (8.8% of the total domestic debt). According to the Ministry of Finance, in January-February 2019, the average weighted interest rate on GS sold at auctions was 6.12% (by types of GS: 91 days - 4.71%, 182 days - 6.05%, 364 days - 6.64%, 2 years - 6.27%, 3 years - 6.63%, 5 years - 6.9%), which is 0.64 pp up compared with the same period of the previous year. As InfoMarket agency reported earlier, Moldova’s domestic public debt in 2018 increased by 480.04 million lei (+ 2.1%), reaching 23 billion 058.57 million lei at the end of December. // 12.03.2019 – InfoMarket.

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