Public debt falls in May and stands at R$ 6.01 trillion, says Treasury

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Public debt is issued by the National Treasury to finance the federal government’s budget deficit. The federal public debt fell R$ 18.86 billion in May this year compared to April, informed this Wednesday (28) the National Treasury Secretariat. As a result, the debt stood at BRL 6.014 trillion, 0.31% more than that recorded in the previous month. In April, the debt was R$ 6.032 trillion. The public debt is issued by the National Treasury to finance the federal government’s budget deficit, that is, to pay expenses that are above tax collection and other taxes. According to the National Treasury, the drop in the debt stock is mainly explained by: the net redemption (redemption surpassing issuances) of R$ 75.04 billion in federal government debt securities by the positive appropriation of interest, in the amount of R$ 56 .19 billion Liquidity reserve According to the National Treasury, the public debt liquidity reserve fell 6.66% in May, from R$ 1.053 trillion registered in April, to R$ 938.18 billion last month. The liquidity reserve, also called “liquidity cushion”, is the name given to the cash value destined to pay the debt and the proceeds from the issuance of bonds. Its main function is to provide flexibility in public debt management. The Treasury also informed that, considering the upcoming maturities of debt securities, the current reserve level guarantees the payment of just over eight months.

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