Public debt settles at €280Bn in May

 In Bank of Portugal, News, Public debt

Portugal’s public debt, as accepted Brussels, remained unchanged at €280Bn in May according to data released by the Bank of Portugal today. (Mon July 3, 2023)

It is the first time that Portugal’s public debt has stabilised after four consecutive MoM increases. The Bank of Portugal explains that this evolution reflects “the increase in deposit responsibilities (€1.8Bn), particularly Government Savings Bonds (€2.2Bn) and on loans (€0.1Bn).
On the other hand, the fall in net bond amortisations (€-1.9Bn) particularly in the short term, evened out the balance.
In April the debt was €279,973.61 million euros, while in May it grew to €280,003.33 million. This was a slight increase in public debt of €30 million.
Forecasts from the government in the State Budget point to a new annual reduction in the public debt ratio which should stand at almost 12 percentage points, of 113.8% of GDP to the lower value of 110% of GDP by the end of this year. However, in the first three months of the year, the public debt climbed to 114% of GDP because of a growth in responsibilities from deposits.
The expectations of the Finance minister, Fernando Medina is that Portugal’s public debt will fall to a value below 100% of GDP in 2025, removing Portugal from the list of the most indebted countries in the Euro area.