1.Evolution of direct government debt
As of February 28, 2015 the Portuguese Direct Government debt amounted to EUR 228,227 million, increasing 1.0 per cent vis-à-vis the end of the previous month. This variation was mainly due to two Treasury Bonds (OT) auctions (OT 2.875%OCT2025) with a total nominal value of EUR 3,043 million. There were also bilateral buybacks of OT 3.35%OCT2015; OT 4.2%OCT2016 and OT 4.35%OCT2017 with a total nominal value of EUR 42 million. Moreover, 2 Treasury Bills (BT) auctions were held, amounting to EUR 250 million (in the 3-months line BT 22MAY2015) and EUR 1,089 million (in the 11-months line BT 22JAN2016), which partially compensated the redemption of BT 20FEB2015 (EUR 1,709 million). The outstanding of Saving certificates (CA) and Treasury certificates (CT) recorded a net positive contribution, increasing by EUR 9 million and EUR 39 million, respectively. There was also a net negative issuance of CEDIC (EUR 372 million) and a net positive issuance of CEDIM (EUR 3 million). The redemption (nominal value) of MTN amounted to EUR 108 million and other non-euro currency bonds amounted to EUR 13 million (corresponding to the partial anticipated redemption of the MTN EUR Oct2022 and BOND GBP May2016, respectively). Exchange rate fluctuations increased the debt outstanding by EUR 153 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, 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.