<- St_tag_p begin ->
The Portuguese net debt rose to EUR 196 300 million in late 2013 to 204 070 million at the end of the second quarter of 2014, according data released by the Bank of Portugal in its updated August 21 “Statistical Bulletin”
. <- st_tag_p end ->
This rise of almost € 7.8 billion from December 31, 2013 pushed the ratio of net public debt to GDP ratio to 122%, taking into account the value estimated by the Bank of Portugal (BoP) gross domestic product. 3.6 percentage points more than at the end of 2013
<- end st_tag_p ->
Compared to the end of the first quarter 2014, the increase in net debt was EUR 6760 million. Between late 2013 and the end of the first quarter of 2014 the increase had been only one billion. There is a shot of the rise in net debt in the second quarter
. <- St_tag_p end ->
These values are relative to the second debt the Maastricht criteria liquid deposits with the Central Government. If these are included, the Portuguese, gross, public debt rose to EUR 223 270 million in the second quarter, equivalent to 134% of GDP, according released the BoP.
<- end st_tag_p ->The debt figures for the end of July will be known to September 1. As regards, only to direct public debt, reported by IGCP, Treasury Management Agency and the Public Debt, there was an increase of EUR 2.9 billion in July, according to the latest Monthly Bulletin that agency .
<- end st_tag_p ->
<- end st_tag_p ->
Annual Interest weigh 4.6% of GDP
<- end st_tag_p -> During the first half of 2014, the Portuguese Treasury issued 34 billion on different instruments of public debt and repaid 35 billion. Additionally, under the troika program, received tranches for an amount of EUR 9.6 billion.
<- end st_tag_p ->The average residual maturity of public debt (gross) is 7.4 years, according to IGCP . The annual interest on the whole debt weigh 4.6% of GDP which indicates an average annual interest rate of 3.5%, data for the end of the first quarter, according to the bop
<-.! End st_tag_p ->
These levels of gross and net debt put the ratio at a historically very high levels. The maximum recorded in fiscal 1892/1893 after the default June 1892, was 124% of GDP, the second series of Nuno Valerio in “The Concise Economic History of Portugal”. Already in late 2013, the ratio of gross debt to GDP reached 128.9%
. <- St_tag_p end ->
<- end st_tag_p ->
Weight of the “official” creditors is less than Ireland and Greece
<- end st_tag_p ->
On the whole public debt, the weight of the “official” creditors (European Central Bank, International Monetary Fund and the two European bailout funds) was 43% in the second quarter of 2014
<- end st_tag_p ->
In amount of EUR 96 200 million “official” debt considered, the lack of updated value, the ECB will hold a portfolio of Portuguese bonds amounting to € 19 billion, according to the accounts of 2013 that central bank published on 20 February 2014
<- end st_tag_p ->
In comparison, at the end of 2013, the weight of “official” sector in Portuguese debt was 43.5%, lower than Ireland with a weight of 50.7% (including the total “official” debt of 25 billion euros in bonds of very long-term held by the Central Bank of Ireland in exchange for promissory earlier) and Greece with 79.6%, according to a study authored by Bruegel institute Zsolt Darvas and Pia Hütll published in June. In the case of Greece and Ireland are included bilateral loans from European Union member countries.
<- end st_tag_p ->Paid to “official” creditors vary the maturities of the loans and annual interest are distinct, so direct comparisons should not be made. On average, the annual cost of the two loans from two European bailout funds is 2.5% with an average term of 20 years. The annual cost of the IMF loan is 3.4% and the period is 7.25 years
. <- St_tag_p end -> <-! St_tag_p begin ->
In the secondary debt market, the yield average for the entire bond debt (for 12 lines of bonds maturing between October 2014 and April 2037) is 2.02% with a average maturity of 6.4 years, according to Bloomberg data for August 22. Having in mind that it is only, public debt issued in bonds, not including other types of debt. The yield average for the whole of the eurozone bond debt is 1.16%
. <- St_tag_p end ->
<- end st_tag_p ->
High Performance
The profitability of Portuguese bond debt, evaluated during the last 52 weeks is high, on the order of 25.52%, according to data from Bloomberg indicator for August 22. It is much lower than the case of Greek debt restructured in 2012, whose return is 58.6%, but is higher than the returns obtained for the Irish, Spanish and Italian debt ranging between 15 and 16.5%. The average return for the 52 weeks to the entire bond debt in the euro area is 11.73%
. <- St_tag_p end ->
In the group of 12 existing bond lines, only one is back to the early redemption by troika , launched through a syndicated operation in May 2013 and maturing in February 2024, serving of benchmark 10 years
. <- st_tag_p end ->
The Treasury will have to pay 5, EUR 1 000 million in the amortization of the bond line that matures in five years to 15 October this year
. <- st_tag_p end -> <-! st_tag_p begin ->
From the beginning of the year that we have attended secondary to a trajectory of declining yields of bond debt to historically low levels market. In some cases, already historic lows recently fixed (eg, in terms of two to five years) or very close to minimum values (as in the term to 10 years, serving as a reference).
<- end st_tag_p -><- end st_tag_p ->
<- end st_tag_p ->
<- end st_tag_p ->
<- end st_tag_p ->
No comments:
Post a Comment