Brazil’s Federal Public Debt Closes September at R$4.156 Trillion

RIO DE JANEIRO, BRAZIL – The Federal Public Debt (DPF), one of the solvency indicators of the Brazilian economy, closed September at R$4.156 trillion (US$1.039 trillion). The figure is two percent higher than in August (R$4.074 trillion).

Last month, the Domestic Public Securities Debt, that in circulation in the domestic market, climbed 2.04 percent, from R$3.913 trillion to R$ 3.993 trillion. The indicator was driven by solid net issuance. Last month, the National Treasury issued R$57.11 billion more debt than it redeemed (removed from circulation).

Most of the Internal Public Securities Debt issues occurred in fixed-rate securities corrected by the SELIC rate. The recognition of R$23.15 billion in interest also contributed to this increase. The appropriation of interest represents the gradual recognition of the rates that correct interest on the public debt. The rates are incorporated month by month into the debt stock, according to the index of each security.

The 0.63 percent hike in the dollar last month left the External Public Debt virtually stable in September. The stock rose from R$160.87 billion to R$162.49 billion.

Despite the hike in September, the DPF is within the limits set by the Treasury. According to the Annual Borrowing Plan published early in the year, the trend is for the DPF stock to close the year between R$4.1 trillion and R$4.3 trillion.

The government uses public debt to borrow funds from investors to honor commitments. In exchange, the government undertakes to return the money subject to some correction, which can be defined in advance, in the case of fixed-rate securities, or follow the SELIC rate fluctuation, inflation or the exchange rate.

Source: Agência Brasil

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