Cost of Servicing Moldova’s Public Debt Could Reach 7 Billion Lei

Moldova’s domestic borrowing has increased significantly over the past two years, placing growing pressure on the state budget, the civic movement Construim Încredere (“Building Trust”) has warned. According to the organization, the average interest rate on government securities (GS) rose from 4.96% in 2024 to 9.08% in 2025, and increased further to approximately 9.5-10% in the first half of 2026, Logos Press reports. As a result, interest payments on the public debt are estimated at around 6 billion lei in 2026 and could reach 7 billion lei in 2027. At the same time, the budget deficit is projected to exceed 21 billion lei. The organization notes that nearly 95% of domestic debt issued through government securities matures in less than one year, forcing the government to continuously refinance existing obligations at increasingly higher costs. In addition, almost 70% of the government securities market is held by a small number of commercial banks, increasing the government's dependence on their lending decisions. According to the authors of the statement, extensive borrowing at high interest rates could reduce lending to businesses and households while slowing investment. Construim Încredere called on the next government to adopt a strategy aimed at lowering financing costs and ensuring that borrowed funds are directed toward productive investment rather than merely covering the budget deficit.