Portugal’s public debt reaches almost €250 billion in 2019

4 February 2020

Portugal ended 2019 with a public debt of €249.74 billion, or an additional €600 million compared with the value recorded at the end of 2018, the Bank of Portugal said in a statistical information statement issued on Monday in Lisbon.

The increase was driven by a rise in debt securities (€2.3 billion) and deposit liabilities (€1.0 billion) mainly due to treasury certificates.

These variations were partly offset by the amortisation of loans (€2.7 billion), largely influenced by the repayment of €2.0 billion in loans taken on within the framework of the European Financial Stability Facility (EFSF) programme of economic and financial assistance.

The assets in deposits of the public administrations decreased by €2.1 billion in 2019, and thus net public debt of deposits registered an increase of €2.7 billion compared with the previous year, totalling €235.3 billion.

Portugal’s public debt ratio as a percentage of Gross Domestic Product (GDP) has been falling after peaking at 131.5% in 2016.

The proposed State Budget for 2020 sets the level of indebtedness to have fallen to 118.9% of GDP in 2019 and to decline to 116.2% of GDP this year, although these figures may only be confirmed after the disclosure of GDP for 2019, whose estimate is scheduled to be announced on 14 February. (macauhub)