Brazil’s public debt fell by 0.7% in July, external debt below 10%

Brazil’s public debt fell 0.7 percent in July to R$5.804 trillion (about US$1.16 trillion), although it is expected to rise in the coming months, the Finance Ministry said Monday.

According to the National Financing Plan (PAF) presented in January, Brazilian public debt is expected to be between R$6 and R$6.4 trillion (between US$1.2 and US$1.28 trillion) at the end of the year.

Brazilian public debt includes internal and external debt.

Movable government debt in domestic securities decreased 0.66 percent in July to R$5.55 trillion (about US$1.11 trillion), while external debt decreased 1.74 percent to R$245.81 billion (about US$49.162 billion).

Due to the increase in Brazil’s key interest rate, the share of interest-bearing securities increased to 37.77 percent in July from 36.69 percent in June, while the share of fixed-income securities decreased to 25.75 percent.

The share of foreign investors in Brazil’s total public debt increased again in July, to 9.01 percent from 8.92 percent in June.

According to the Ministry of Finance, the public debt buffer, the financial reserve used in times of turmoil or high concentration of maturities, fell to R$1.17 trillion (US$234 billion) in July from R$1.22 trillion (US$244 billion) in June.

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