State debts to National Bank remained constant during August

The internal state debt towards the National Bank of Moldova remained constant during August and is currently MDL 2 billion 581 million (approx. USD 200 million). In order to act according to the currency policy, the Government will have to pay until the end of this year another MDL 89 million. From the start of this year, the state debt towards the central bank reduced by MDL 30 million. According to financiers, the Government could manage to keep to the currency policy if the budget would give up on part of its funds. The Government will also seek to increase the wages in the budgetary sector first. Of the overall debt, MDL 2 billion 181 million are credits taken in the previous years. The annual interest rate for these credits is 7.5%, an increase of 0.2 percentage points compared to July. Another MDL 400 million of the debt are state bonds (SB) acquired by the NBM as result of conversion of previous debts. For this part of the debt a yearly interest rate of 7.4% is applied. The Government has not taken any new credits from the National Bank during this year. The currency policy for 2006 plans to diminish the state debt towards NBM to MDL 2 billion 492.2 million.