After shrinking for four months in the end of 2017, public debt began 2018 with a 1,000 million euros' rise to 243.6 billion euros, according to the Bank of Portugal.
After shrinking for four months in the end of 2017, public debt started off 2018 with a 1,000 million euros’ rise. The 800 million euros’ reimbursement to the International Monetary Fund (IMF) was not enough to compensate for the additional pubic debt securities issuance, of around 2.2 billion euros. And January ended with a 243.6 billion euros’ debt.
2017 ended with a steep plunge in public indebtedness in comparison to the maximum reached in August, in a trajectory that is followed by an acceleration of economic activity, which allowed the debt ratio in comparison to the country’s wealth to end last year with a 125.6% of GDP according to the Maastricht definition — the most important criterion for European rulings and an important indicator for the markets. It was the smallest level since 2011, below the Government’s goal, according to INE’s estimates, disclosed this Wednesday.
However, 2018 starts with a worsening, according to data from the Bank of Portugal. This was done after, in January, Portugal moved forward with a ten-year bond issuance with the help of a banking syndication which raised 4,000 million euros. In addition, IGCP raised 1,750 million euros in Treasury bills.
As for the evolution of public debt net of central government deposits, the public indebtedness amount in Portugal registered a 300 million euros increase, totaling 223.3 billion euros.