Brazil’s Federal Public Debt (DPF) advanced slightly and 2.03% in February. As a result, the nominal value of the DPF rises to R$5.730 trillion, compared to R$5.616 trillion in the previous month.
The data were released by the National Treasury Secretariat this Wednesday (30). The DPF, which includes the federal government’s internal and external debt, is the issuance of public bonds by the National Treasury to finance the federal government’s budget deficit, which collects less than it spends.
The increase is a result of the expenditure of R$ 36.146 billion in appropriated interest. This amount, however, was reduced to R$78.115 billion in net redemptions.
“Inflationary pressure and increased geopolitical tensions provoked by the war in Ukraine continued to increase risk aversion in global markets and provoke volatility in the main stock indices. In Brazil, this scenario was reflected in the local yield curve, which operated under pressure during most of the month”, explains the Treasury.
In total, issuance of securities amounted to R$119.005 billion, while total redemptions were R$30.854 billion.
Also according to the Ministry of Economy, while the average cost of DPF stock in 12 months increased from 8.61% per year to 8.68% per year, the average cost of issuances in public offerings in the domestic market increased, passing from 8.9% pa in January to 9.5% pa in February.
In 2021, the DPF advanced 12%. The expectation of the economic team is that the Public Debt closes this year between R$ 6 trillion and R$ 6.4 trillion.
Source: CNN Brasil
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