Despite significant events affecting public finances, such as the COVID-19 pandemic, the war in Ukraine, and the energy crisis, Slovakia continued managing its debt and liquidity based on a strategy from 2014. Although its validity was formally extended, the strategy no longer reflected the fast-changing environment. “It is unacceptable that in such a serious area as debt management, which affects every citizen, the responsible institutions operate without a clear vision for aligning revenues and expenditures, setting investment priorities, leveraging modern debt management tools, or fostering economic growth. The consequences will impact us all, especially lower and middle-income groups. Without reform, the future for younger generations looks bleak,” emphasised Ľubomír Andrassy, President of SAO.

Auditors also highlighted the absence of a public report on activities and strategy. Until 2014, the report was part of ARDAL’s annual report. From 2014 to 2017, it was included in ARDAL’s activity report, but in the following years, no comprehensive annual report was published. Only summaries in English – primarily for investors – and a few pages in Slovakia’s consolidated annual report were released. Although ARDAL prepared internal strategy assessments, they were not published due to the inclusion of sensitive commercial information. Andrassy pointed out that at the March meeting of over 100 financial, academic, and audit institutions in Geneva, held under the UN's auspices, participants agreed on the need to enhance debt reporting transparency. SAO therefore recommends that the Ministry of Finance develop a new, modern medium-term debt management strategy. ARDAL, in cooperation with the Ministry, should also prepare and publish an annual strategy report, which should be submitted to the National Council’s Finance and Budget Committee.

The level and annual increase of public debt are primarily driven by deficit spending by the government and the public sector, with new debt used to cover annual shortfalls. A significant portion of the new debt also goes toward repaying existing liabilities. In simple terms, the debt is the sum of previous deficits, adjusted upward by interest costs. Public debt is held by both domestic and foreign creditors, with a ratio of approximately 50:50 from 2018 to 2024. Domestic banks tend to hold bonds until maturity, while foreign investors often trade Slovak bonds on secondary markets. The National Bank of Slovakia owns nearly one-third of the country’s debt. Persistent deficits and fiscal policy risks, reflected in weaker international credit ratings, increase Slovakia’s risk premium and borrowing costs.

In 2024, Slovakia’s public debt exceeded 59% of GDP, totalling more than €77 billion. That translates to over €14,000 in debt per citizen, from infants to seniors. In 2025, debt management costs are projected to rise by €380 million year-on-year, reaching approximately €1.65 billion. “This trend is worrying – in just two years, annual debt servicing costs could reach nearly €2.5 billion,” warned Andrassy. He also noted that the European Commission annually publishes a debt sustainability report for each EU member state. A debt level above 60% of GDP – the Maastricht criterion – is considered risky for Slovakia, as it results in the worst long-term sustainability rating in the EU. “Slovakia ranks worst among all 27 EU countries in terms of long-term debt sustainability – due to an ageing population, unsustainable pension policies, and weak economic and regional growth. It’s high time for a realistic roadmap to steer our country out of this dangerous debt spiral. With meaningful consolidation, Slovakia can start behaving like a prudent steward of public resources – allocating them efficiently and with an eye toward long-term development,” concluded Ľ. Andrassy.