RIO DE JANEIRO, BRAZIL – The federal public debt closed out July with a 0.38 percent hike without discounting inflation, in relation to the previous month.
In July, the debt balance stood at R$3.993 (US$1) trillion, against R$3.977 trillion in June. The data are included in the monthly debt report, released on Wednesday, August 28th, by the National Treasury Secretariat of the Ministry of Economy.
The public debt is issued by the National Treasury to cover expenses that exceed the collection of taxes, contributions, and other revenues, financing the government’s budget deficit.
The variation, according to the Treasury, is due especially to the effect of interest rates, which grew R$23 billion. This fact was offset by the net redemption of R$84 billion in bonds, which partially offset interest expenses and contributed to offset the value of the debt in July.
Still, according to the Treasury, even with the July result, the debt remains below the target range established by the federal government, which estimated value of R$4.1 to R$4.3 trillion in debt for 2019.
The domestic public debt, on the other hand, rose 0.52 percent, compared to the previous month in July, rising from R$3.826 trillion to R$3.846 trillion. The external debt was reduced by 3.19 percent, decreasing to R$ 146 billion.
According to the figures, the participation of foreign investors dropped slightly in July, compared to the previous month, from 12.34 percent of the total domestic debt at R$473 billion to 12.31 percent in July at R$472 billion. As a result, foreign investors continue to occupy the fourth position among the largest holders of debt securities.
The data also show that pension funds are in first place among debt security holders, with 25.97 percdent of the total, R$998 billion, followed by investment funds, with 25.29 percent, R$ 972 billion. In third place are the financial institutions, with R$ 873 billion, or 22.72 percent of the total.