1. Evolution of direct government debt
As of March 31, 2015 the Portuguese Direct Government debt amounted to EUR 220,841 million, decreasing 3.2 per cent vis-à-vis the end of the previous month. This variation was mainly due to the first tranche of early repayment of Portugal’s IMF loan facility, which amounted to EUR 6,588 million. Moreover, 2 Treasury Bills (BT) auctions were held, amounting to EUR 315 million (in the 6-months line BT 18SEP2015) and EUR 1,059 million (in the 12-months line BT 18MAR2016), which partially compensated the redemption of BT 20MAR2015 (EUR 1,877 million). There were also bilateral buybacks of OT 3.35%OCT2015 and OT 6.4%FEB2016 with a total nominal value of EUR 197 million. The redemption of MTN amounted to EUR 758 million and other non-euro currency bonds amounted to EUR 7 million (nominal value), corresponding to the redemption of the BND USD Mar2015 and to the partial anticipated redemption of BOND GBP May2016, respectively. The outstanding of Saving certificates (CA) and Treasury certificates (CT) recorded a net positive contribution, increasing by EUR 15 million and EUR 63 million, respectively. There was also a net negative issuance of CEDIC (EUR 161 million) and a net positive issuance of CEDIM (EUR 1 million). Exchange rate fluctuations increased the debt outstanding by EUR 747 millions.
2. Public debt ratio
The IGCP, E.P.E. monthly bulletin presents only the Direct Government debt. The Direct Government debt is defined as the liabilities for which the sub-sector State is responsible in the form of financial obligations. According to the Council Regulation (EC) n.º 479/2009 of May 25, amended by Council Regulation (EU) n.º 220/2014 of March 7, General Government debt is the consolidated gross debt of the whole General Government Sector outstanding at nominal value.
At the end of 2014 the Direct Government debt totaled EUR 217,126 million (125.5% of GDP), while the General Government consolidated gross debt, according to the Maastricht criteria, reached EUR 225,280 million (130.2% of GDP), as reported to Eurostat on April 17, 2015.
3. Financing cost of the loans issued under the Economic and Financial Assistance Program (EFAP)
The IGCP, E.P.E. monthly bulletin presents an estimate of the all in cost of all the loans issued under the EFAP. This estimate includes all costs (interest and fees), but depends on the future behavior of interest and exchange rates, since the loans issued by the International Monetary Fund (IMF) are denominated in foreign currency and pay variable rate, as do part of the loans issued by the European Financial Stability Fund (EFSF). The estimate is based on interest rate and exchange rate forwards and on the provisional EFSF funding program.