Central Bank: Bonds in Brazil add up to 135% of country’s GDP

Bonds in Brazil have added up to the equivalent of 135 percent of the nation’s gross domestic product (GDP). The amount, the Central Bank said, is significant, and, despite the mounting issuance of private securities, government bonds are still prevalent.

According to statistics released by the Central Bank, in December 2021, government bonds accounted for 88 percent of the GDP, while private bonds represented 47 percent.

Bonds are securities issued by companies or governments in order to raise funds for investments or to carry out their activities. In the scope of the federal government, for example, one of the sources of funding is the Tesouro Direto, created in 2002 to popularize such investments and enable individuals to acquire government bonds directly from the National Treasury.

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In December last year, debt securities issued by Brazil residents totaled BRL 11.7 trillion—135 percent of the GDP.

Bonds in the domestic market are preponderant in the stock of bonds. They corresponded to 96 percent of the balance in December 2021.

As for the term of the securities, the bank reports that, in December 2021 as well as throughout the series, most have an issue term of over two years.

Currency-wise, securities in local currency predominate, with 96 percent of the balance issued by residents in December 2021.