Government Debt Monthly Bulletin, August 2014, IGCP

Page created: Friday, 22 August 2014 14:20GMT | Updated: Friday, 22 August 2014 14:47GMT

Report:  22 August 2014 - 4 Page(s)
EU/IMF Loans  Government Debt  Primary Market  Public Debt  Public Finances

1. Evolution of direct government debt
As of June 31, 2014 the Portuguese Direct Government debt amounted to EUR 215,771 million, increasing 1.3% vis-à-vis the end of the previous month. This positive variation was mainly due to the issuance of an MTN in non euro currency (MTN USD Oct2024), with a nominal amount of EUR 3,307 million. The stock of OT decreased due to the partial anticipated redemption of OT 3,35% Out2015, amounting to EUR 183 million. 2 Treasury bills (BT) auctions were held, amounting to EUR 482 million (in the 6-months line BT 23JAN2015) and EUR 1060 million (in the 12-months line BT 17JUL2015), which did not compensate the redemption of the BT with maturity in July, amounting to EUR 3,464 million. EUR 1,091 million were issued to FRDP (distributed equally among all series), while redemptions amounted to EUR 1,097. The outstanding of Saving certificates (CA) and Treasury certificates (CT) maintained a positive contribution, increasing by EUR 263 million and EUR 324 million, respectively. There was an increment of the outstanding of CEDIC by EUR 711 million, while the stock of CEDIM diminished by EUR 5 million. The stock of the Other non tradable debt increased by EUR 8 million, and exchange rate fluctuations contributed to an increase of the debt outstanding by EUR 370 million.
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 3605/93 of November 22, amended by Council Regulation (EC) n.º 475/2000 of February 28, General Government debt is the consolidated gross debt of the whole General Government Sector outstanding at nominal value. At the end of 2013 the Direct Government debt totaled EUR 204,252 million (123.3% of GDP), while the General Government consolidated gross debt, according to the Maastricht criteria, reached EUR 213,631 million (129.0% of GDP), as reported to Eurostat on March 31, 2014.

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 already 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.

Original title:  Government Debt Monthly Bulletin August 2014