Public debt rises 2.38% in April and stands at BRL 6.03 trillion

The amount of Federal Public Debt (DPF) bond issues, combined with a low volume of redemptions last month, raised the total debt stock by 2.38%, from R$ 5.89 trillion in March to R$6.03 trillion in April. This is a nominal increase of R$ 140.12 billion. The data were disclosed this Monday (29) by the National Treasury Secretariat, linked to the Ministry of Finance.

“This variation was due to the net issuance [emissões menos resgates]in the amount of BRL 92.30 billion, and the positive appropriation of interest, in the amount of BRL 48.15 billion, minus the transfer of BRL 0.34 billion to the Central Bank portfolio”, said the ministry, in a note. The Treasury forecasts that the FPD will increase in the coming months. According to the Annual Borrowing Plan (PAF) 2023, presented at the end of January, the FPD stock should end the year between R$ 6.4 trillion and R$ $6.8 trillion, Agência Brasil reported.

Through the appropriation of interest, the government recognizes, month by month, the correction of interest on securities and incorporates the value into the stock of public debt. With the Selic rate (basic interest) at 13.75% per year, the appropriation of interest puts pressure on government debt. Last month, the domestic Public Securities Debt (in securities) (DPMFi) totaled R$ 116.51 billion, while redemptions were R$ 34.39 billion, resulting in net issuance of R$ 82.12 billion.

Another R$ 10.19 billion are related to the net issuance of the External Federal Public Debt (DPFe), contracted in the foreign market, totaling R$ 92.30 billion of total net issuance. According to the Treasury, “it is the largest net issue since June 2021”. With regard to the composition of the FPD, there was a decrease in the participation of the DPMFi, changing from 96.02% in March to 95.98% in April. The participation of DPFe, the external debt, increased slightly from 3.98% to 4.02%.

The share of floating-rate securities increased from 39.08% in March to 38.84% in April. The participation of FPD fixed rate securities increased slightly, from 24.7% in March to 24.81% in April. The share of price index-linked securities registered a slight increase, from 32% to 32.11%. The values ​​are in line with the 2023 PAF projections.