The Brazilian public debt, which includes the internal and external indebtedness of the federal government, fell 3.01% in April to R $ 2.79 trillion, according to the National Treasury on Friday (27). In March, the public debt had recorded high and reached R $ 2.88 trillion.
Debt reduction in April is due to government bond redemptions in amounts greater than the emissions by the government.
While emissions totaled R $ 52.74 billion, redemptions totaled R $ 161.33 billion, resulting in a net redemption (discounting emissions) of R $ 108.60 billion.
In April, the accrual of interest totaled R $ 21.69 billion.
Public debt is the result of the bonds that the government issues to pay the papers being rescued, that is, who are winning, and also to finance loans.
In recent years, for example, more than R $ 400 billion were issued by the National Treasury to provide funds for loans made by the National Bank for Economic and Social Development (BNDES). In the future, the bank will return those resources to the Union.
The expectation is that government debt is between R $ 3.1 trillion and US $ 3.3 trillion at the end of 2016. The forecast is the Annual Financing Plan (PAF) in 2016. After 2015, it was R $ 2.79 trillion.
On Tuesday (24), the incumbent president, Michel Temer, announced measures to contain the growth of public spending and resume growth of the Brazilian economy.
Among the proposals is to limit the growth of public spending in a year, the inflation rate of the previous year. The measure prevents real growth (above inflation) expenditure. The Finance Minister, Henrique Meirelles, said the proposal would reach including budgets aimed to fund actions in the areas of health and education in Brazil.
Another action is the return, the National Bank for Economic and Social Development (BNDES), of at least R $ 100 billion in funds transferred by the Treasury in recent years; the suspension of new subsidies; the extinction of the sovereign fund; and support for a project that changes the rules for oil exploration in the pre-salt.
It was announced tax increase at that time. However, the Finance Minister, Henrique Meirelles, did not rule out that this is done in the future.
This week, the government Temer delivered to Congress authorization for the government to record in 2016 a record shortfall of R $ 170.5 billion in their accounts.
domestic debt x external
When payments and debt receipts are conducted in real, it is internal call. When such financial transactions occur in foreign currency, usually the US dollar, the debt is classified as external.
In April, the domestic debt fell 3.03% and increased from R $ 2.75 trillion in March to R $ 2.67 trillion. Data from the National Treasury indicate that the result is due to the amount of redemptions have been R $ 107.98 billion above the amount of redemptions, discounted by the appropriation of R $ 24.67 billion interest.
In the same month, the stock of external debt was reduced by 2.70% and reached R $ 129.60 billion. In this case, according to the Treasury, the fall occurred - as in previous months - due to the appreciation of the real against the currencies that make up the stock of external debt.
"There was great movement or issue or redemption. This avariação responds primarily to the change of the currency," said the general coordinator of operations of the public debt of the National Treasury, Leandro Secunho.
The data released by the Treasury show that the participation of foreign investors in domestic public debt rose in April. In February and March, there was a decrease of movement, after Brazil lost the degree of risk rating agencies investment.
Non-resident investors in Brazil held last month, 17.39% of the total domestic debt, equivalent to R $ 464 billion. In March, their participation was 16.73%, or R $ 460 billion.
Thus, foreigners following in fourth place of the main holders of domestic debt in April. Before them, the pension funds appear (24.14% of the total, or R $ 644 billion), financial institutions (21.86% of the total, or R $ 583 billion) and investment funds (20.87 % of the total, or R $ 557 billion).
According to Secunho, it was the first time that the relative share of pension funds exceeded the financial institutions - which often appear as the main holders.
"The pension funds have bought more bonds and long-term securities," he said.
By buying bonds with longer maturities, Secunho assessed as positive the outcome. "They are investors with longer-term horizon," he stressed.