site.btaCabinet Approves Government Debt Management Strategy for 2026-2028

The Council of Ministers approved a strategy for government debt management for the period 2026-2028, based on the Government Debt Act and Public Finance Act, the government information service said on Thursday.

It sets out the guiding principles and policy directions for government debt management over the next three years. The strategy is based on assumptions on the required debt financing and public debt parameters under which the State Budget Bill for 2026 and the Updated Medium-Term Budget Forecast for the period 2026-2028 were worked out. 

The government adds that the objective is to secure the necessary funds to refinance outstanding debt, finance the planned state budget deficit, and ensure liquidity support.

The outstanding debt to be refinanced amounts to EUR 1.4 billion in 2026, EUR 1.8 billion in 2027, and EUR 2.1 billion in 2028. 

The remaining part of the planned new debt financing is grounded on the need to finance the planned deficits in the state budget and support liquidity, including to ensure the possibility of taking on debt for specific programmes in the areas of water supply and sewerage, regional development, defence, healthcare, energy, and innovation.

The draft state budget for 2026, adopted at the same meeting of the Council of Ministers, states that the state debt is expected to reach EUR 37.6 billion (31.3% of GDP) in 2026, EUR 43.5 billion (34.2% of GDP) in 2027, and EUR 49 billion (36.6% of GDP) in 2028. In 2026, the maximum amount of new government debt can be up to EUR 10.44 billion, including up to EUR 3.2 billion under the SAFE instrument to strengthen the European defence industry.