Brazil’s net government debt fell in September for the third straight month, to a total of US$ 329.7 billion (940.54 billion reais), equivalent to 53.7% of the Gross Domestic Product (GDP).
The figures for August registered a debt of US$ 330 billion (941.313 billion reais), or 54% of the GDP. During the July/September quarter, the nominal reduction in the debt amounted to US$ 2.8 billion (R$ 8 billion).
The monthly report on fiscal policy was released by the head of the Economic Department of the Central Bank, Altamir Lopes.
According to Lopes, that last month’s primary surplus of US$ 2.1 billion (6.044 billion reais) and foreign currency earnings of US$ 1.9 billion (5.6 billion reais) surpassed the US$ 4 billion (11.5 billion reais) in nominal interest payments, contributing to the US$ 280.5 million (800 million reais) reduction in the debt.
As a result, the ratio between the debt and the GDP has already decreased 5% this year, according to Lopes, reflecting the growth that has occurred in the GDP and the primary surpluses.
There was a real increase, however, in gross government debt (Federal Government, Social Security, and regional governments), which attained US$ 455 billion (1.299 trillion reais, or 74.3% of the GDP) in September, compared with US$ 453 billion (1.291 trillion reais, or 74.1% of the GDP) in August.
Translator: David Silberstein