Public debt rises for eight consecutive months to record €288Bn

Portugal’s public debt rose again in July for the eighth month on the trot, with public administration debt increasing by around €1Bn to a new record of €288Bn according to data from the Bank of Portugal.

The Bank of Portugal explains that this increase is down to increased issues of public debt bonds aimed at investors (€800 million) and government national savings bonds aimed at the general public (€400 million), which were partially offset by a reduction in the issue of sovereign treasury certificates (gilts) by €200 million.

Nevertheless, in net terms of deposits held by the public administration, the public debt fell €1.4Bn in July, to €258.8Bn – the lowest value since January.

In October, Portugal will have to pay out €11.4Bn to investors for a 10-year treasury bond line launched in 2015 and which is now reaching maturity, with a significant reduction in public debt expected this month.

In addition, the State has to pay around €1Bn to the European Financial Stability Fund (EFSF) by the end of the year, a reimbursement related to the country’s bailout in 2011.

Portugal’s public debt reached 98.1% of GDP at the end of the first half – after having closed 2024 at 94.9%. The government forecasts a reduction to 91.5% at the end of this year.

Source: Bank of Portugal