1. Evolution of direct government debt
As of June 30, 2015 the Portuguese Direct Government debt amounted to EUR 220.641 million, decreasing 1.6 per cent vis-à-vis the end of the previous month. This variation was mainly due to the second tranche of early repayment of Portugal’s IMF loan facility, with a nominal value of EUR 1,765 million, as well as from the execution of bilateral buybacks of OT with maturity until 2016, with a total nominal value of EUR 679 million and of several BT lines with maturity in 2015 with a total nominal value of EUR 1,151 million. 2 Treasury Bills (BT) auctions were held, amounting to EUR 212 million (in the 3-months line BT 18SEP2015) and EUR 593 million (in the 11-months line BT 20MAY2016), which partially compensated the redemption of BT 19JUN2015 (EUR 1,133 million). On the other hand, the stock of CEDIC increased by EUR 492 million, and the outstanding of Saving certificates (CA) and Treasury certificates (CT) recorded a net positive contribution, increasing by EUR 12 million and EUR 90 million, respectively. Exchange rate fluctuations decreased the debt outstanding by EUR 355 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 2014 the Direct Government debt totaled EUR 217,126 million (125.5% of GDP), while the General Government consolidated gross debt, according to the Maastricht criteria, reached EUR 225,280 million (130.2% of GDP), as reported to Eurostat on April 17, 2015.
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 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.