Moldova faces rising debt service costs and budget deficit

Oleg Tofilat, executive director of the Union of Transporters and Road Builders, has raised concerns regarding Moldova's public debt management. While the total debt stands at approximately 42% of GDP, Tofilat argues that the primary vulnerability lies in the rising cost of servicing that debt rather than the total amount itself.

According to Tofilat, annual interest payments have escalated from roughly 1.5 billion lei in 2021 to approximately 6 billion lei currently. He noted that these interest obligations must be met on time, unlike infrastructure project funding, which can face years of negotiation. Additionally, Moldova faces a budget deficit estimated at 23 billion lei, which contributes to the continuous growth of the national debt.