Public debt on rise reaches BRL 5,86 trillion

The low volume of securities maturing increased Federal Public Debt (DPF) in February. According to figures released Wednesday (Mar. 29) by the National Treasury, the debt rose from BRL 5,769 trillion in January to BRL 5,856 trillion last month, up 1.51 percent. The increase is expected to continue in the coming months.

According to the Annual Borrowing Plan (PAF), displayed at the end of February, the DPF stock should close out 2023 between BRL 6,4 trillion and BRL 6,8 trillion.

Holders

Financial institutions continue to be the main holders of the domestic Federal Public Debt, with a 27.8 percent stock share. Investment funds ( 24.8%) and pension funds (22.8%) are next on the list of debt holders.

The participation of non-residents (foreigners) was stable at 9.8 percent in February. This stability occurred despite the turbulence in the foreign markets. The other groups total 14.9 percent participation.

Through public debt, the government borrows money from investors to honor financial commitments. In exchange, it commits to return the funds after a few years, with some correction, which may follow the Selic rate (the economy's basic interest rate), inflation, the dollar exchange rate, or it can be pre-fixed.