Internal government debt of the Republic of Moldova: trends and perspectives

Abstract

The government debt of a country represents its borrowing engagements in order to assure the financial resources necessary for implementing its functions related to the production and economic processes, social sphere and functioning of other domains of activity. At the same time, the government debt facilitates the conduct of monetary policy by public authorities aimed at maintaining a stable exchange rate of the national currency and maintaining the optimal level of inflation. Therefore, the government debt is one of the indicators and elements that characterize the financial stability of a country and is approached in different policy documents in order to assure and maintain its efficient management. In this context, this article aims to presents an analysis of the internal government debt of the Republic of Moldova for the last 4 years, its structure, evolution and trends as well as the perspectives and future plans of the Republic of Moldova’s authorities in order to assure a high level of financing its needs in conditions of minimum risks. The research methods used in reflecting the obtained results are the analysis, synthesis comparison and graphic method. JEL: F65, G23, G28, H63, O16.