The balance of the state debt expressed in national currency at the end of 2015 was 33.5 billion lei, an increase of over 6 billion on a year before. According to an Audit Office analysis of the Government’s report on the debt of the public sector and state guarantees, the state debt in 2015 was the largest during the last four years. The state guarantees issued by the Ministry of Finance for the emergency loans provided by the National Bank to three banks this year will be substituted with state bonds and the loans will be repaid during 25 years, IPN reports.

Following the memorandum signed by the Ministry of Finance and the National Bank of Moldova, the total debt of 13.6 billion lei was divided into 25 separate installments that will be paid in 1 to 25 years.

The burden on the state budget, caused by the value of the guarantees provided by the state, represents 57.6% of the fiscal incomes of the state budget and 45.2% of the state budget expenditure. This can affect the sustainability of public finances following the non-fulfillment of the payment obligations deriving from the state guarantees.

The internal state debt could significantly increase and this will affect the budget during the next few years. As a share of the GDP, this debt in 2016 is expected to rise by about 9.8%.