Igor Dodon: The Government’s Debt Is Growing, as Are the Default Risks for Moldova

The government’s debt is growing rapidly, and the risks of default are becoming a reality for Moldova, ex-President Igor Dodon expressed this opinion on social networks. He drew attention to the fact that “in 2022, the government plans to borrow a record amount of funds - 17.3 billion. lei, of which 6.2 billion - to repay debts and interest on old loans,” infotag.md reports. “Due to the fact that last week the National Bank raised the base rate for the sixth time, loans taken by the government in the domestic market have risen in price by more than 60%. If, until recently, the servicing of loans planned for this year involved the payment of interest in the amount of 270 million lei, now, due to the failed monetary and budgetary policy, this payment already exceeds 440 million per year and will easily reach 600 million lei. And this is only for this year’s loans,” the honorary PSRM chairman wrote. According to him, the current government “will soon leave, its incompetence and mistakes made in recent months will cost everyone dearly.” “A few years ago (in 2014-2015), when the same figures were in power but under different political colors, the citizens of the country were burdened with a 20-year-long obligation to pay for debts taken to cover the theft of more than a billion US dollars from the banking sector. Now history repeats itself under other “good” slogans and excuses, but with the same huge budget funds to be returned by our children and grandchildren,” Dodon believes. Point