Moldovan government approves programme on state debt's management for 2020-2022

Chisinau, 5 February /MOLDPRES/ - The cabinet of ministers approved the programme on the medium-term state debt’s management for 2020-2022, at a meeting today.     

The document represents a continuation of the programme, Medium-term state debt management (2019-2021); it was revised for the period 2020-2022, in line with the macroeconomic indexes, which stayed at the basis of the working out of the State Budget Law for 2020.

„For the medium and long term, Moldova will explore less and less financing opportunities in concessional and semi-concessional conditions and they are to be replaced by financing at market costs, respectively higher ones. In the process of management of the state debt, decision-makers should take into consideration that this might lead to the appearance of new risks or the toughening of the current ones. The programme is focused on the description of the strategy of financing the balance (deficit) of the state budget and on identifying the related cost and risk factors,” the cabinet’s decision reads.  

At the same time, the programme established the fundamental goal of the process of state debt’s management, specific goals, as well as the actions due to be undertaken by the authorities, in order to ensure the financing and improve the structure of the state debt’s portfolio and their implementation will not create pressures on the sustainability of the fiscal policy on the whole.  

The document was carried out in line with the best international practices, defined in the World Bank’s and IMF’s guidelines as to the working out of the Medium Term Debt Strategies, with the use of the Medium Term Debt Management Strategy Analytical Tool (MTDS AT).