Government Debt Monthly Bulletin, July 2014, IGCP

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Report:  21 July 2014 - 4 Page(s)
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IGCP Monthly Bulletin

1. Evolution of direct government debt
As of June 30, 2014 the Portuguese Direct Government debt amounted to EUR 212,902 million, decreasing 0.7% vis-à-vis the end of the previous month. This variation was mainly due to redemption of OT 4.35% Jun2014, with a nominal amount of EUR 4,376 million, and the partial anticipated redemption of OT 3.6% Oct2014 (amounting to EUR 37 million), which more than compensated the OT 5.65%Feb2024 auction with a nominal value of EUR 975 million. Moreover, 2 Treasury bills (BT) auctions were held, amounting to EUR 500 million (in the 3-months line BT 19SEP2014) and EUR 966 million (in the 12-months line BT 19JUN2015), which more than compensated the partial anticipated redemption of BT 18JUL2014 (EUR 49 million). The redemption of MTN amounted to EUR 54 million, corresponding to the partial anticipated redemption of the MTN EUR Oct2022. The outstanding of Saving certificates (CA) and Treasury certificates (CT) maintained a positive contribution, increasing by EUR 151 million and EUR 210 million, respectively. On the other hand, the stock of CEDIC decreased by EUR 429 million, and CEDIM by EUR 8 million. The stock of the Other non tradable debt increased by EUR 600 million, due to the 2nd disbursement of a loan obtained from the EIB in 2010 (after this disbursement, there is still an amount of EUR 450 million to be disbursed, out of the overall nominal value of EUR 1.5 billion initially contracted). The 2nd disbursement has a regular amortizing structure between 2019 and 2036. Exchange rate fluctuations contributed to a reduction of the debt outstanding by EUR 10 million.
2. Public debt ratio
The IGCP 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 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 July 2014