Brazil’s public debt drops 0.4% to US$1.1 trillion in August

Brazil’s public debt – which includes the government’s debts in Brazil and abroad – closed out in August at R$5.78 trillion (US$1.1 trillion).

The value represents a nominal drop – without considering inflation – of 0.4% compared to July.

The National Treasury released the data on Wednesday, September 28.

The National Treasury issues public debt to finance the government’s budget deficit, that is, to cover expenses that exceed the collection of taxes, contributions, and other revenues.

It is one of the primary references for evaluating the country’s payment capacity by the global agencies that assess investment grades.

August was marked by an improvement in the external market, with economic data showing more contained inflation in the United States, which boosted the appetite for emerging assets.

During the month, the local yield curve lost level and steepness, reflecting expectations of an end to the monetary tightening cycle in Brazil and relief from inflationary pressures.

The CDS Brazil (which measures the country’s risk) reached a value of 263 basis points on August 31.

In August, the liquidity reserve was reduced by 2.69% to R$1.17 trillion.

With information from Poder360

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