The state’s public debt over the next three years is projected to increase by EUR 622 million, rising from EUR 4.122 billion in the current year to EUR 4.744 billion by the end of 2026. This is according to the Ministry of Finance‘s projection in the Draft Budget Law for the next year.
According to the document, domestic debt over the next three years will decrease, dropping from EUR 545 million in the current year to EUR 240 million by the end of 2026. Meanwhile, over the same period, external debt will increase from EUR 3.5 billion to EUR 4.4 billion.
In the structure of external debt, the largest share is held by debt from Eurobonds at 48.7%, while in second place is the loan from the Exim China Bank with a total share of 19.81%. The Eurobond debt amounts to EUR 1.5 billion, while the debt to the Chinese creditor is EUR 711 million.
The Ministry of Finance expects an increase in borrowing costs in the coming period due to the rise in interest rates in the global financial market, and part of the borrowing is linked to variable interest rates, mainly in euros.
“In the next year, an increase in debt is expected in absolute terms compared to 2023, as well as in relation to GDP, due to the fact that the estimated GDP for the next year is higher by about EUR 409.66 million compared to the GDP of this year. It is expected that the state debt at the end of 2024 will amount to 60.61% of GDP, while the public debt will be around 61.62% of GDP,” the Ministry of Finance stated.
The total amount of the increase in public debt over the next three years is about EUR 55 million less than the debts the state must repay in the next year, amounting to EUR 677 million, of which EUR 138 million is interest.
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