By the end of 2022, the Ministry of Finance shall redeem Government Securities (GSs) worth 4.14 billion lei, and at the end of 2022 the balance of GSs at purchase price shall amount to 17.03 billion lei, which is by 1.02 billion lei less than in late 2021.
The Ministry of Finance presented such data, noting that, thus, the debt incurred in previous years is expected to decrease. The Ministry of Finance reminded that it issues Government Securities (GS) on the domestic market to refinance the domestic public debt accumulated in previous years, particularly in 2014-2021. As a consequence, the volume and structure of domestic government debt are a legacy of earlier periods. As the Ministry of Finance notes, unfortunately, the maturity structure of this debt is extremely unfavorable: the maturity of 85% of the GS portfolio (14.4 billion lei) is less than 1 year and the debt needs to be refinanced within 1 year. The financial authorities point out that the full repayment of domestic debt in 1 year is impossible, especially in times of crisis. Thus, over 10 months of 2022 there were 41 auctions for the sale of Government Securities. The Ministry of Finance of the Republic of Moldova conducted 41 auctions with GSs, of which 20 auctions were held with treasury bills and 21 auctions with government bonds. As a result, GSs worth 18,406.5 million lei were sold at purchase price. At the same time, GSs maturing on October 31 were purchased in the amount of 19 billion 519.7 million lei, at purchase price, of which treasury bills were redeemed for 19 billion 049.7 million lei and government bonds - for 470 million lei. At the November 1, 2022 auction, treasury bills worth 1 billion 297.4 million lei were sold at the purchase price. Thus, on November 3, treasury bonds with maturity term in the amount of 1 billion 358.4 million lei were redeemed at the purchase price and the interest was paid in the amount of 103.3 million lei. Thus, the volume of sales did not cover the volume required for redemption at 61 million lei. By the end of 2022, the Ministry of Finance is to buy back GSs in the amount of 4 billion 143.4 million lei at the purchase price, including treasury bills in the amount of 4 billion 026.5 million lei and government bonds - in the amount of 116.9 million lei. Also, the balance of state securities at purchase price, issued in the primary market by the end of 2022, is forecasted to amount to 17 billion 033.1 million lei, by 1 billion 018.8 million lei less as compared to the end of 2021. //04.11.2022 - InfoMarket
