Public debt retreats with the arrival of Covid-19
Data released this Monday by the Bank of Portugal show a 596 million euros decrease in debt.
The national public debt retreated in the month coronavirus arrived in Portugal. The decrease of 596 million euros, compared to February, brought the total stock to 254,776 million in March, according to data released this Monday by the Bank of Portugal. This is the lowest value since January.
The coronavirus crisis is putting pressure on public accounts because of the demand for measures to support the economy. This pressure has led the Treasury and Public Debt Management Agency (IGCP) to readjust the country’s funding programme and to speed up debt issuance.
However, this effect has not yet been felt in the debt from the point of view of Maastricht (the one that counts for Brussels), which retreated in March. “The decrease in debt securities and deposit liabilities contributed to this decrease,” explains the Bank of Portugal.
Assets in government deposits decreased by one billion euros, showing that Portugal is using the financial cushion. In this sense, the net debt of assets in general government deposits went the opposite direction: it increased by 430 million euros to 235,127 million euros.
