In 2024, the gross public debt is projected to fall to around 56.3% of GDP and is expected to continue declining further to about 55.8% in 2025.

According to the baseline scenario, the gross public debt is expected to decrease to around 55% in 2026 and further to about 48.5% in 2031.

According to the draft budget published by the Ministry of Finance, domestic borrowing in 2025 is planned at a value of 50 billion lek, at the same level as in 2024.

Fresh borrowing in the domestic market is anticipated to be mainly executed through long-term government securities, aligning with risk reduction objectives while also catering to investors’ preferences for such instruments.

Borrowing is anticipated to be executed through the disbursement of loans that support the implementation of the government’s priority projects, along with budget support disbursements, the procedures and prerequisites for which may be completed in 2025.

NIf market conditions are favorable, the issuance of a Eurobond is also planned for 2025.

In total, foreign borrowing in 2025 is estimated to be around 111.3 billion lek, and considering the foreign debt that is repaid during the year, net borrowing is expected to result in a level of 8.2 billion lek.

/sm/