Debt 130,5% of GDP, above the annual target of the OE – Diário de Notícias – Lisbon

Pad. The state has a record of 22.1 billion euros in deposits, reveals the BdP

The level of public debt rose to the equivalent of 130,5% of the gross domestic product (GDP), totaling 241,8 billion euros at the end of November, more by 4.4% than in the same month of 2015, indicate the calculations of DN/Cash can be made based on official data yesterday released by the Bank of Portugal. The goal of the Budget of the State is to get to the end of 2016 with a ratio of 129,7%.

The burden of debt had eased a little between October and November, “reflecting the early repayment of loans from the International Monetary Fund (2.1 billion euros)”, says the central bank in an update of its statistical bulletin. “In November of 2016, the public debt stood at 241,8 thousand million euros, down 1.3 billion euros on the end of the previous month.”

however, in the penultimate month of last year, the Republic was clearly more indebted than a year before. That total debt grew to referred to 4.4% in homologous terms, the most rapid, for example, that the nominal growth of the economy (in the period from January to September, the GDP advanced by 2.8%, just to have a term of comparison). This means that, although there are signs of moderation in recourse to debt, this still grows above the pace of the economy, which poses problems of sustainability in the long term.

Deposits increase 18%

Part of the worsening of the public debt came from the accumulation of deposits (liquidity, money saved in the boxes the central Treasury), while this item is grown by an impressive 18.3% more compared to November of 2015. The State thus has of part any thing as by 22.1 billion euros in pillows of safety and liquidity, one of the greatest values on record, money that should serve this year to finance part of the capitalization of the CGD.

Despite being a protection against unexpected events, the maintenance of a level of deposits of this magnitude costs money to taxpayers, since it involves recourse to debt and respective interest payments. Currently, the Republic faces an interest rate of 3.7% in the debt markets, long-term (ten years).