The government approved the medium-term public debt management Program for 2026-2028
The document outlines the management strategy and identifies cost and risk factors associated with the public debt portfolio, based on macroeconomic indicators and medium-term public debt forecasts. According to Finance Minister Andrian Gavrilită, assuming macroeconomic stability is maintained, by the end of 2028, the share of public debt in GDP will not exceed 45.5%, with the average public debt maturity at 10.1 years, an improvement over the current situation and a positive impact on the public debt structure. The Ministry of Finance will continue to monitor risk indicators and ensure transparency by publishing monthly public debt data. The Ministry of Finance's baseline scenario takes into account updated forecasts from the Ministry of Economy and Digitalization, while also considering risks such as a slowdown in the implementation of structural reforms and investment projects, escalating geopolitical tensions in the region and globally, new shocks in energy markets and accelerating global inflation, unfavorable and difficult-to-predict climate conditions, and the prospect of higher interest rates in financial markets. Three alternative strategies for financing the state budget deficit over the medium term have been prepared. The project also models shock scenarios for changes in individual market indicators that have a significant impact on public debt and its servicing costs. To finance the public debt, the authorities will attract external financing (the EU, EBRD, EIB, and World Bank will remain the main sources of external financing). Almost 60% of external borrowings will be used to support the state budget, and 40% will be used to finance investment projects, with the share of project loans gradually increasing. Domestic financing of the government debt will be provided through the issuance of government securities, direct sales of government bonds to individuals, the attraction of institutional investors, etc. // 29.12.2025 — InfoMarket
