Government Debt Monthly Bulletin, December 2014, IGCP

Page created: Tuesday, 23 December 2014 16:46GMT

Report:  23 December 2014 - 4 Page(s)
IGCP   Montlhy Bulletin

1. Evolution of direct government debt
As of October 31, 2014 the Portuguese Direct Government debt amounted to EUR 216,926 million, decreasing 1.4% vis-à-vis the end of the previous month. This variation was mainly due to the redemption of OT 3.6% Oct2014, with a nominal amount of EUR 5,002 million, and the partial anticipated redemption of OT 3.35% Oct2015, amounting to EUR 462 million, which more than compensated the OT 4.8% Jun2020 auction with a nominal value of EUR 1,142 million. 2 Treasury bills (BT) auctions were held, amounting to EUR 250 million in the 3-month line (BT 23JAN2015) and EUR 749 million in the 9-month line (BT 17JUL2015). The outstanding of Saving certificates (CA) increased by EUR 214 million and Treasury certificates (CT) by EUR 331 million. The stock of CEDIM rose slightly by EUR 1 million, while the stock of CEDIC decreased by EUR 341 million. The redemption of MTN amounted to EUR 54 million (nominal value), corresponding to the partial anticipated redemption of the MTN EUR Oct2022. There was also a net negative issuance of ECP and Other non-tradable debt amounting to EUR 4 million and EUR 2 million, respectively. Exchange rate fluctuations increased the debt outstanding by EUR 64 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 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 2013 the Direct Government debt totaled EUR 204,252 million (119.3% of GDP), while the General Government consolidated gross debt, according to the Maastricht criteria, reached EUR 219,225 million (128.0% of GDP), as reported to Eurostat on September 30, 2014. This notification is in accordance with new European System of National and Regional Accounts (ESA 2010), which implied significant methodological changes with respect to the previous notification.
3. Financing cost of the loans issued under the Economic and Financial Assistance Program (EFAP)
The IGCP 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.