Federal Public Debt grows 0.46% and reaches BRL 5.77 trillion in October

Brazil’s Federal Public Debt (DPF) increased by 0.46% in nominal terms, reaching R$5.77 trillion in October. In September, the FPD value was R$5.75 trillion, an increase of R$26.29 billion. The data were released this Friday (25) by the National Treasury Secretariat of the Ministry of Economy.

According to the secretariat, “the month of October was marked by persistent inflation and the continuation of the cycle of rising interest rates in the United States, political instability in the United Kingdom and geopolitical tensions, which increased concerns about the risk of a global recession”.

According to the Ministry of Economy, this variation was due to net redemptions of R$9.11 billion and the positive appropriation of interest, in the amount of R$35.39 billion.

The FPD, which includes the federal government’s internal and external debt, is the issuance of public bonds by the National Treasury to finance the federal government’s budget deficit, which collects less than it spends.

The average cost of issues showed an increase of 0.08 percentage points, changing from 11.71% per year in September to 11.79% in October. On the other hand, the average FPD cost accumulated in 12 months decreased from 10.47% pa to 10.04% pa in the period.

Drop in liquidity reserve

The debt liquidity reserve reduced by 0.24% in nominal terms, according to the National Treasury. The reserve went from R$1.03 trillion in September to R$1.02 trillion in October. The net redemption of R$ 8.3 billion was the main variation factor, according to the portfolio.

“The current liquidity reserve guarantees payment for the next 8.97 months ahead of maturities. For the next twelve months, the maturity of BRL 1,338.78 billion of DPMFi is expected”, states the document.