I - Fiscal results
The primary surplus of the consolidated public sector reached R$19.9 billion in January. The central government turned in a primary surplus of R$12.5 billion; while regional governments posted a surplus of R$7.2 billion and state enterprises, a surplus of R$131 million.
The cumulative 12-month primary surplus reached R$81 billion (1.67% of GDP), as compared to R$91.3 billion (1.90% of GDP) in December 2013.
Nominal interests appropriated on an accrual basis reached R$30.4 billion in January, as compared to R$24 billion in December. This upward trajectory is explained by the higher number of working days and the result of exchange swap operations, with net expenditures expanding from R$49 million in December to R$3.9 billion in January. Over twelve months, nominal interests totaled R$256.6 billion (5.30% of GDP), compared to R$248.9 billion (5.18% of GDP) over the 12-month period ended in December 2013.
The nominal result, which includes the primary surplus and appropriated nominal interests, turned in a deficit of R$10.5 billion in January. Over twelve months, the nominal deficit reached R$175.6 billion (3.63% of GDP), compared to R$157.6 billion (3.28% of GDP) in the previous month.
The nominal deficit observed in December was financed by expansion of R$76.2 billion under the securities debt, partially offset by reductions of R$37.9 billion under the net bank debt, R$25.5 billion under other sources of domestic financing, including the monetary base, and R$2.4 billion under net external financing.
II - Federal securities debt
The domestic federal securities debt outside the Central Bank and evaluated by the portfolio position totaled R$1,950 billion (40.3% of GDP) in January, a decline of R$78.1 billion from the previous month. The result reflected net redemptions of R$100.7 billion; an increase of R$0.4 billion due to exchange rate depreciation; and the incorporation of interests worth R$22.2 billion.
Highlights included net redemptions of R$63.2 billion in LTN; R$46.1 billion in NTN-F; and R$2.2 billion in NTN-C; and net issues of R$7.7 billion in LFT and R$3.2 billion in NTN-B.
The participation by indexing factors recorded the following changes, when compared to December: the percentage of exchange-indexed securities remained stable at 0.5%; Selic-indexed securities decreased from 15.6% to 15.5%; fixed-rate securities declined from 34.6% to 29.8%, due to net redemptions of LTN and NTN-F; and inflation-indexed securities fell from 28.9% to 28.5%. The participation of repo operations rose from 20% to 25.4%, with net sales of R$149 billion.
In January, the maturity structure of the securities debt on the market was as follows: R$343.8 billion, 17.6% of the total, maturing in 2014; R$346.6 billion, 17.8% of the total, maturing in 2015; and R$1,259.7 billion, 64.6% of the total, maturing as from January 2016.
The total net exposure in foreign exchange swap operations reached R$192.1 billion. The result of these operations (difference between ID yields and exchange variation plus coupon) was unfavorable to the Central Bank by R$3.9 billion.
III - Public sector net debt
The public sector net debt (PSND) reached R$1,613.2 billion in January (33.3% of GDP), decreasing by 0.5 p.p. of GDP when compared to the previous month. This reduction resulted from the currency devaluation of 3.6% observed in the month, which helped to reduce the PSND/GDP ratio by 0.5 p.p.; the primary surplus, which contributed with 0.4 p.p.; and the nominal GDP growth, with 0.2 p.p. Conversely, the appropriation of nominal interest rates helped to increase the ratio by 0.6 p.p., while the parity adjustment of the basket of currencies that make up the net external debt, 0.1 p.p.
The General Government Gross Debt (Federal Government, Social Security, state and municipal governments) reached R$2,829.6 billion in January, 58.5% of GDP, rising 1.3 p.p. of GDP over the previous month. This expansion was mainly due to the seasonality observed in the liquidity conditions in the period that affected the volume of repo transactions.