Government Debt Monthly Bulletin, February 2015, IGCP

Page created: Monday, 23 February 2015 12:00GMT | Updated: Monday, 23 February 2015 14:24GMT

Report:  23 February 2015 - 4 Page(s)
Government Debt  IGCP   Monthly Bulletin

1. Evolution of direct government debt
As of January 31, 2015 the Portuguese Direct Government debt amounted to EUR 225,885 million, increasing 4.0 per cent vis-à-vis the end of the previous month. This variation was mainly due to the issuance of two new benchmarks: 10-year (OT 2.875%OCT2025) with a nominal value of EUR 3,500 million, and a 30-year benchmark (OT 4.1%FEB2045) amounting EUR 2,000 million. There were also bilateral buybacks of OT 3.35%OCT2015; OT 6.4%FEB2016 and OT 4.2%OCT2016 with a nominal value of EUR 516 million. Moreover, 2 Treasury Bills (BT) auctions were held, amounting to EUR 314 million (in the 6-months line BT 17JUL2015) and EUR 1,161 million (in the 12-months BT 22JAN2016), which partially compensated the redemption of BT 23JAN2015 (EUR 2,417 million). The outstanding of Saving certificates (CA) and Treasury certificates (CT) recorded a significant positive contribution, increasing by EUR 470 million and EUR 1,471 million, respectively. This increased is explained by the announcement of a new saving certificates series and changes in the remuneration conditions of Treasury certificates from February, 2015. There was also a net positive issuance of CEDIC (EUR 1,197 million) and CEDIM (EUR 1 million). Exchange rate fluctuations increased the debt outstanding by EUR 1,579 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 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.