Public administration debt (government debt) rose to 876.288 billion lei in July 2024 from 860.331 billion lei in the previous month, according to Finance Ministry (MF) data.

As a percentage of the GDP, government debt climbed to 52%, from 51.1% in June (GDP according to the National Institute of Statistics release of October 10, 2024).

In the seventh month of the year, medium- and long-term debt increased to 824.06 billion lei, from 809.248 billion lei in June, while short-term debt rose to 52.228 billion lei, from 51.083 billion lei in the previous month.

Most of this debt, 738.508 billion lei, was represented by government securities. Loans amounted to 122.379 billion lei.

The debt in national currency amounted to 401.757 billion lei, that in euro to 389.45 billion lei equivalent, and the debt in US dollars to 83.867 billion lei equivalent.

Also, the central government debt reached 854.206 billion lei in July 2024, up from 836.506 billion lei in June, of which 802.030 billion lei medium and long-term. The bulk of central government debt was contracted in lei (384.178 billion lei) and in euro (384.949 billion lei, equivalent).

Local public administration debt rose to 22.081 billion lei, from 21.825 billion lei in the previous month, of which 22.029 billion lei in the medium and long term.

At the same time, in July 2024, the general government domestic debt amounted to 428.925 billion lei (25.5% of GDP), of which 411.482 billion lei was central government debt and 17.443 billion lei local government debt.

According to MF data, the external debt of the public administration amounted to 447.363 billion lei (26.6% of GDP), of which 442.724 billion lei external debt of the central public administration and 4.639 billion lei external debt of the local public administration.

On Wednesday, the government approved an emergency ordinance raising the public debt ceiling to 53% of the gross domestic product by the end of 2024, according to the European Union’s methodology.

According to a government press release, this amendment aims to ensure flexibility in attracting the financial resources needed to implement the 2024 financing plan, but also to pre-finance the needs of 2025, respectively to maintain the foreign currency reserve at the disposal of the State Treasury at a comfortable level.

AGERPRES