Government aims to reduce state debt

The state debt at the end of the 2012 budgetary year will total 20.4 billion lei, down 210 million lei compared with December 31, 2011, Info-Prim Neo reports, quoting the draft state budget law for next year approved by the Government. The state debt will represent 21.9% of the GDP, by 3.2% less than on December 31, 2011. The foreign debt will make up 72% of the state debt. Minister of Finance Veaceslav Negruta said that such a level of the foreign debt is tolerable for a country like Moldova. According to the minister, the Government is making effort to reduce the state debt. In 2011, it was decreased by 640 million lei. “We will continue working to reduce the state debt and the budget’s dependence on foreign financing. A larger state debt means spending more money that does not belong to us and putting the burden on other generations,” said the minister.