Brazil’s Public Debt rises 0.46% in October to BRL 5.78 trillion

BRASILIA. KAZINFORM - The rise in interest rates in the last months prevented the country’s Federal Public Debt (FPD) from falling in October, even with a high volume of fixed-rate bonds maturing, Agencia Brasil reports.

According to figures released by the National Treasury, public debt rose from BRL 5.752 trillion in September to BRL 5.778 trillion last month, up 0.46 percent.

The Treasury expects FPD to rise in the coming months. According to the Annual Financing Plan, presented at the end of January, the Federal Public Debt stock should close out 2022 between BRL 6 trillion and BRL 6.4 trillion.

By means of the public debt, the National Treasury issues public bonds to borrow money from investors and fulfill financial commitments. In exchange, it agrees to return funds after a few years, when the bond is due, with some return. The correction may follow the Selic rate (the economy’s benchmark interest rate), inflation, exchange, or come pre-fixed.

Photo: Anadolu Agency