Portugal’s state debt rises by 9.5 billion euros in 2016

2 February 2017

The public debt of Portugal stood at 241.8 billion euros at the end of 2016, which was an increase of 9.5 billion euros compared to the end of 2015, announced the Bank of Portugal in statement issued on Wednesday in Lisbon.

The central bank said that the rise in public debt was driven by “net issuance of securities (11.2 billion euros), mainly Variable Income Treasury Bonds (OTRV), a new debt instrument which raised about 3.5 billion euros from Portuguese households.

In addition there was an increase in issues of treasury certificates, also underwritten by households, totalling 3.4 billion euros.

The increase in public debt in 2016, according to the Bank of Portugal, was higher than the public-sector borrowing requirement, which allowed an accumulation of deposits of around 4 billion euros.

“Thus, the increase in debt, net of deposits, was approximately 5.5 billion euros in 2016, totaling 223.8 billion at the end of the year,” said the statement from the Portuguese central bank. (macauhub)