1. Evolution of direct government debt
As of December 31, 2014 the Portuguese Direct Government debt amounted to EUR 217,126 million, decreasing 0.5% vis-à-vis the end of the previous month. This variation was mainly due to the redemption of BT 19DEC2014, with a nominal amount of EUR 1,560 million, which more than compensated the Treasury bills (BT) auction of a new 12-month line (BT 18DEC2015), amounting to EUR 979 million, as well as to the reduction of the stock of CEDIC by EUR 1.596 million. The stock of medium- and long-term bonds also decreased, on the back of the partial anticipated redemptions of the OT 6.4% FEB2016 (amounting to EUR 49 million) and of the OT 4.2% OCT2016 (amounting to EUR 30 million).The outstanding of Treasury certificates (CT) increased by EUR 354 million and Saving certificates (CA) by EUR 170 million. The stock of CEDIM rose slightly by EUR 4 million. Exchange rate fluctuations increased the debt outstanding by EUR 591 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.