Brazil Government Debt Stable at 51.7% of GDP

Brazil’s net government debt remained stable in March at US$ 481.83 billion (R$ 1.021 trillion). This amount is equivalent to 51.7% of the Gross Domestic Product (GDP), the sum of all wealth produced in the country.

This debt/GDP ratio represents a slight improvement from the month before, when it stood at 51.8%, according to the head of the Economic Department of the Central Bank, Altamir Lopes, in Wednesday’s, April 26, presentation of the March report on Fiscal Policy.

Lopes remarked that several factors contributed to reverse the 0.3 percentage point rise that occurred in this ratio in the first two months of the year.

The first was the primary surplus (money saved by the government to cover interest owed on government debt), which exceeded debt interest payments by US$ 134.97 million (R$ 286 million).

This was reinforced by the 7.2% appreciation of the real in relation to the US dollar and the consequent valorization of the GDP itself.

On the other hand, when the numerator is expressed in terms of the gross debt of the general government – which includes the National Social Security Institute (INSS) and state and municipal governments – the debt/GDP ratio swelled instead of shrinking.

Total debt, which amounted to US$ 696.08 billion (R$ 1.475 trillion) in February (74.9% of the GDP), increased to US$ 703.16 billion (R$ 1.490 trillion) in March (75.4% of the GDP). The increase was due mainly to the incorporation of interest payments into the debt stock.

The Fiscal Policy report shows that the financial obligations of the federal government, expressed in terms of outstanding titles in the hands of the public, rose US$ 5.19 billion (R$ 11 billion) in March in relation to February.

Despite the fact that the government redeemed US$ 1.46 billion (R$ 3.1 billion) more in titles than it issued, debt interest tipped the scales at US$ 6.65 billion (R$ 14.1 billion).

Agência Brasil

Tags:

  • Show Comments (1)

  • Guest

    When the government….
    borrows at 15/17 %, even if there would not be new borrowing, total debts increase by this insane interest rate.
    But on top of that the government make new borrwing contrary to what they say.
    They reduced the foreign debts bearing a lower interest rate and issues new debts in local currency with a much higher rate.
    The financial world can only applaude the Brazilian autogoal.
    They are even telling you….do more…do more !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

In Brasília Assemblymen Get Busy Trying to Prevent a Federal Intervention

The assemblymen in the Federal District Legislative Assembly (CLDF) are hard at work to ...

Central do Brasil Is Brazil Searching for Its Innocence

For film-lovers, Walter Salles’ Central do Brasil not only encapsulates the sum total of ...

Brazil Cinemas Must Show 35 Days of Brazilian Movies in 2005

Brazilian movie theaters will have to show Brazilian films for at least 35 days ...

In Brazil, Chí¡vez Says the Days of Being US Oil Colony Are Over

The president of Venezuela, Hugo Chávez, declared that Brazil and Venezuela are taking concrete ...

Brazilians Are Paying 54% a Year in Interest for Personal Credit

Brazil's National Financial System volume of credit reached 1.085 trillion reais (US$ 669 billion) ...

Brazil’s New Middle Class Hasn’t Shrunk the Inequality Gap

The past two decades have witnessed a series of political and economic rollercoaster rides ...

Car Exporters in Brazil Get New Line of Credit from BNDES

The Brazilian Development Bank (BNDES) announced the creation of a new line of credit ...

São Paulo city

37% of All Brazilians Live in Six Cities

27.2% of the 5,507 municipalities in Brazil lost population between 1991 and 2000. On ...

Brazilian Presidential Candidate Sampaio: Always Moving to the Left

Plínio de Arruda Sampaio recently turned 80 (born on July 26, 1930). He graduated ...