Moldova’s public debt leaps up by €180mn in January

Moldova’s public debt leaps up by €180mn in January
/ bne IntelliNews
By bne IntelliNews February 23, 2023

Moldova’s public debt rose by MDL3.6bn (€180mn) or by 3.8% m/m in January to MDL98.2bn (nearly €5bn) at the end of the month.

The monthly increase was 2.5 times steeper compared to the monthly increase seen in January 2022. The external debt increased the most, by MDL3bn to MDL63.2bn at the end of January, while the domestic public debt edged up by only MDL0.6bn to MDL35.1bn.

However, based on the projected GDP for the year, the debt-to-GDP ratio dropped to 31.8% at the end of January, down from 34.0% at the end of 2022 and 32.1% at the end of 2021.

The country’s public debt surged by MDL16.9bn (€800mn), or by 22% y/y, in 2022, when Moldova’s public debt marked the second-steepest advance ever.

The State Budget Law envisages that, at the end of 2023, the internal state debt will not exceed MDL37.48bn and the external state debt MDL85.02bn (the equivalent of €4.25bn). Totally, the public debt should not exceed MDL122.5bn or 39.7% of the projected GDP. However, the actual increase in the public debt will largely depend on the country’s access to financing, which has constrained its public deficit over the past years.