Portugal’s public debt down to €273.6 billion in August
According to the Bank of Portugal, Maastricht public debt decreased by €1.0 billion in August 2021, to a total of €273.6 billion.
Public debt fell for the second consecutive month in August, after peaking in June. Maastricht public debt decreased by €1.0 billion in August 2021, to €273.6 billion.
According to the Bank of Portugal (BoP), this reduction “mainly reflected debt securities redemptions (€1.3 billion)” and “was partially offset by the increase in loans obtained under the Recovery and Resilience Facility (€0.4 billion).”
The country’s public debt has been rising progressively since the beginning of the pandemic, with the government having to launch massive support policies to mitigate the impact on the economy. However, after reaching an all-time high of €277.5 billion last June, it now seems to be on a downward path.
It should also be stressed that public debt fell despite the strengthening of the so-called financial cushion. Data from the Bank of Portugal showed that general government deposits increased by €2.2 billion. In other words, by deducting these deposits, public debt fell by €3.2 billion, to €251.5 billion.
