The National Treasury’s indebtedness grew again in November of this year, reaching R$ 5.87 trillion – a figure 1.6% higher than BRL 5.778 trillion registered in Octoberthe month in which the Federal Public Debt (FPD) had already advanced 0.46% compared to September (R$ 5.752 trillion).
The federal public debt encompasses all the financial loans that the National Treasury needs to make when the collection of taxes and contributions is not enough to cover the expenses resulting from the provision of public services and the necessary public investments. It covers both loans made by public and private financial institutions, as well as by national and international organizations, government entities and even individuals.
According to the report that the National Treasury Secretariat released today (27), the R$ 92.56 billion added to the FPD last month are the result of maintaining the current interest rate, which added R$ 51.31 billion to the debt stock , and the difference between issues (BRL 67.09 billion) and redemptions (BRL 25.84 billion) of public debt securities, which added another BRL 41.25 billion to the total debt.
Of the R$41.25 billion in net issuance (issuances minus total redemptions), R$39.81 billion are related to net issuance of domestic Federal Public Debt (DPMFi) and R$1.44 billion to net issuance of Public Debt External Federal (DPFe).
The so-called liquidity reserve, or public debt cushion, used in times of turbulence or a strong concentration of public debt securities maturities, increased by 11% in nominal terms, from R$ 1.028 billion in October to BRL 1.142 billion in November. Compared to the same month of the previous year (R$ 1,096.94 billion), there was an increase, in nominal terms, of 4.11%.
“The liquidity index points to the sufficiency of the reserve to cover the maturities of DPMFi bonds [Dívida Pública Mobiliária Federal interna]”, sustains the National Treasury in the report, guaranteeing that the reserves available in the Single Account destined to the payment of the public debt “guarantee the payment of the next 9.30 months of maturities”, highlighting that the months of January, March, May and July 2023 will concentrate maturities estimated at BRL 943.93 billion.
In November, Treasury Direct issues reached BRL 3.59 billion, while redemptions corresponded to BRL 2.785 billion, resulting in a net issue of just over BRL 805 million. The security most demanded by investors was the Selic Treasury, which accounted for 51.32% of the amount sold.