Moldova’s external debt will come to 15.8% relative to GDP by year’s end

According to the Ministry of Finance’s estimates, by the end of this year the country’s debt will be 20.48 billion lei, i.e. with 1.25 billion lei more than last year. Relative to the GDP, the country’s external debt will be of 15.8%, and the internal one – 6.9%, reports Info-Prim Neo. Minister of Finance Veaceslav Negruta explained that the Budget deficit would be financed through a loan from the internal market. “Relative to the GDP, the budgetary deficit will rise from 0.9% to 1.3% (i.e. by 91 million lei and will add up to 906 million lei). This increase is attributed to the 3 billion lei fall in GDP. Public debt will also rise, because the Budget deficit will be financed by borrowing from the internal market. We are talking about the 200 million lei necessary for completing the Parliament building’s construction by commercial bank subscription. Additionally, the state will issue 110 million lei worth of securities for the financing of the rising Budget deficit”, stated Veaceslav Negruta. The deficit would also be financed by funds gathered from the privatization of some public goods and from some external sources. Relative to the state’s entire debt, the foreign debt constitutes 69.7%. For December 31, 2012, the project internal state debt is 6.2 billion lei. External debt should not overcome $1.18 billion, and the state guaranteed external debt will be $3.2 million. Payments for external debt (i.e. both payment of interest and the loan itself) are estimated at 1.7% of the GDP for 2012; it should sum up to approximately 783 million lei, the equivalent of $66 million.