According to data released by the National Treasury on Wednesday (28), the federal public debt in Brazil reached R$6.01 (US$1.2) trillion at the end of May.
This figure represents a 0.31% decrease compared to April’s debt of R$6.03 trillion.
The drop in the debt can be attributed to various factors, including the international economic situation, such as the uncertainty surrounding the debt ceiling in the United States, as well as the interest rate hikes by central banks in Europe and North America.
Additionally, emerging economies, including Brazil, benefited from positive developments in Congress regarding new fiscal rules.
The decrease in the federal public debt was mainly driven by a decline in the Domestic Federal Public Securities Debt (DPMFi), which decreased from R$5.79 trillion in April to R$5.77 trillion in May (a 0.40% reduction).
Conversely, the external Federal Public Debt (DPFe) increased by 1.80% in nominal terms, reaching R$ 246.78 billion (US$ 48.43 billion) in May.
During May, the government issued R$139.92 billion in Federal Public Debt (DPF) bonds and redeemed R$214.96 billion, resulting in a net redemption of R$75.04 billion for the month.
Of this total, R$74.68 billion corresponded to the Domestic Federal Public Securities Debt (DPMFi), while R$ 360 million pertained to the External Federal Public Debt (DPFe).
The liquidity reserve (cushion) also experienced a nominal decrease of 6.66%, falling from R$1.05 trillion in April to R$983.18 billion in May.
Compared to May 2022, when the reserve stood at R$1.11 trillion, there was an 11.27% decrease (in nominal terms).
The liquidity index recorded in May ensures payments for 8.06 months of future maturities, guaranteeing the maintenance of prudent cash reserves that cover maturities for over three months ahead.