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“Oddly enough, I would say that the debt must be paid. The world is moving in such a direction that states have no plans to pay their debts. See the example from Japan. Japan increases its public debt every year. Its debt / GDP ratio is currently around 250%. By comparison, Lithuania is around 45 percent. And no one is talking about the Japanese government ever paying off that debt. Nobody speaks and that Italy will pay its debt, “Rudzkis told Knowledge Radio.
“The only question is what is debt service,” he added.
According to the economist, the policy of low interest rates will continue, so the cost of debt service should be kept low.
“It is very possible that we are around 50%. we will live in debt to GDP forever, say, for the next 10 years, and their service will cost us nothing, “said R. Rudzkis.
The deficit of the Lithuanian public administrations in 2021 is expected to be 7%. GDP. General government debt will reach 51.9 percent next year. GDP.
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