Government Debt Monthly Bulletin, September 2015, IGCP

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Presentation:  23 September 2015 - 4 Page(s)
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Government Debt  IGCP  Monthly Bulletin

IGCP, E.P.E. Monthly Bulletin

1. Evolution of direct government debt

As of August 31, 2015 the Portuguese Direct Government debt amounted to EUR 223,189 million, remaining almost unchanged vis-à-vis the end of the previous month (an increase of 0.04%). The variation in the debt stock was mainly due to two Treasury Bills (BT) auctions, amounting to EUR 400 million (in the 11-months line BT 22JUL2016) and EUR 790 million (in the 3-months line BT 20NOV2015), which more than compensated the redemption of BT 21AUG2015 (EUR 790 million). The stock of CEDIC decreased by EUR 113 million, and the outstanding of Saving certificates (CA) and Treasury certificates (CT) recorded a net positive contribution, increasing by EUR 16 million and EUR 164 million, respectively. Exchange rate fluctuations decreased the debt outstanding by EUR 365 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.