Public debt rises one tenth in March to 130.3% of GDP – Jornal de Negócios – Portugal

Public debt stood at 226,276 in March this year one billion euros, which corresponds to an increase of one tenth compared to December and a fall of three percentage points compared to March 2014. For the families and companies reduced their indebtedness.

The public debt of Portugal increased further in the first quarter of this year, after having decreased in the last three months of 2014, according to the Statistical Bulletin revealed this Thursday, May 21, the Bank of Portugal.

The value of government debt in the optical Maastricht stood at 226,276 billion, representing to 130.3% of GDP. Last December was 225,28 billion euros, equivalent to 130.2% of GDP.

Despite the rise was slight, is well stopped the downward movement of the public debt burden in GDP, which reached a peak in March of last year when it reached 133.3% of GDP.

The Bank of Portugal shows the monthly values ​​of the evolution of Portuguese public debt, but the weight GDP is only known in the months of quarter end.

In view of the absolute monthly figures, the highest level was always set in February this year, the month in which the national debt reached 234,585 million euros. Between February and March the decline of public debt in value was more than 8 billion euros.

The Bank of Portugal had justified the increase in public debt in January and February with the “liquid bond issues and certificates of Savings and Treasury. ” Given the context of low interest rates, the government has accelerated the issuance of sovereign bonds and in January there was a strong race to savings certificates and Treasury, due to the change in the profitability of the calculation rule these products.

In net terms (discounting the deposits of the central government) public debt reached in March the highest ever in 209,247 billion euros, compared with 208,129 billion euros in December 2014 and 204 153 million euros in March last year.

Businesses and households less indebted

If public debt is increasing in the private sector continues to deleverage of the Portuguese economy.

The Portuguese private companies accumulated a debt of 266.882 million euros in March, which corresponds to 153.6% of GDP. December stood at 154.2% of GDP and in March last year was at 157.5% of GDP.

Within companies, SMEs and non-financial SGPS lowered the debt, which worsened in large companies.

Also the Portuguese families are falling debt, which in March stood at 146,578 billion euros, which corresponds to 84.4% of GDP. December stood at 85.4% of GDP and in March last year 89.8% of GDP.

The descent of the indebtedness of firms and households meant that the private sector debt not finance has retreated to 238% of GDP in March this year, compared with 239.6% of GDP in December 2014 and 247.3% of GDP in March last year.

(News updated with the data of private sector debt)