I - Fiscal results
The consolidated public sector registered a primary deficit of R$18.1 billion in May. The Central Government, regional governments and state-owned companies posted respective deficits of R$17.8 billion, R$212 million and R$147 million.
In the year, the cumulative primary result reached a deficit of R$13.7 billion, compared to a surplus of R$25.5 billion in the same period in 2015. In the 12-month period, a primary deficit of R$150.5 billion (2.51% of GDP) was observed, 0.18 p.p. of GDP higher than the value observed in April.
Nominal interests appropriated on an accrual basis reached R$42.5 billion in October, compared with R$23.3 billion in April. This increase was due to the greater number of working days in the month and the loss of R$3.1 billion with foreign exchange swap operations, compared to gains of R$12.3 billion in the previous month. Cumulative nominal interests in the year totaled R$151.2 billion compared to R$198.9 billion in the same period of the previous year. In twelve months, nominal interests totaled R$454 billion (7.57% of GDP), dropping by 0.21 p.p. of GDP against that observed in April.
The nominal result, which includes the primary result and nominal interests appropriated on an accrual basis, posted a deficit of R$60.6 billion in May. In the year, the nominal deficit totaled R$164.9 billion, compared with a deficit of R$173.4 billion in the same period of the previous year. In the 12-month period, the accumulated nominal result posted a deficit of R$604.6 billion (10.08% of GDP), falling by 0.03 p.p. of GDP compared to the value recorded in April.
The nominal deficit in May was financed through expansions of R$59.6 billion in the securities debt and R$2.8 billion in net bank debt, partially offset by decreases of R$1.5 billion in other domestic financing sources, including the monetary base, and R$228 million in net external financing.
II - Federal securities debt
The domestic federal securities debt, outside the Central Bank, evaluated by the portfolio position, totaled R$2,744.2 billion (45.7% of GDP) in May, registering an increase of R$74 billion compared to the previous month. This result reflected net issuances of R$44.3 billion, an increase of R$0.7 billion due to exchange rate depreciation, and incorporation of interests, R$29 billion.
Items worth highlighting are the net issuances of R$35.5 billion in LTN, R$6.4 billion in NTN-F, R$3.5 billion in LFT, and R$0.8 billion in CFT-E; and net redemptions of R$1.8 billion in NTN-B.
The participation by indexing factors registered the following evolution in relation to April: the percentage of exchange-indexed securities remained stable at 0.4%; Selic-indexed securities remained at 19.6%; fixed-rate securities rose from 25.9% to 26.9%, due to net issuances of LTN and NTN-F; and inflation-indexed securities fell from 26.2% to 26.1%. The participation of repo operations fell from 27.5% to 26.7%, showing net purchases of R$24.9 billion.
In May, the maturity structure of the securities debt on the market was as follows: R$269.5 billion, 9.8% of the total, maturing in 2016; R$354.3 billion, 12.9% of the total, maturing in 2017; and R$2,120.4 billion, 77.3% of the total, maturing as of January 2018.
At the end of May, the total net exposure in exchange swap operations reached R$221.4 billion. The result of these operations in the period (difference between the yield of Interbank Deposits and the exchange rate variation plus coupon) was unfavorable to the Central Bank by R$3.1 billion.
III - Public sector net debt
The public sector net debt reached R$2,379.1 billion (39.6% of GDP) in May, rising by 0.2 p.p. of GDP compared to the previous month.
In the year, the PSND/GDP ratio increased by 3.5 p.p. as a result of the incorporation of interests (+2.5 p.p.), the impact of accumulated exchange rate appreciation of 7.9% in the period (1.6 p.p.), the primary deficit (0.2 p.p.), the effect of nominal GDP growth (-0.6 p.p.), the parity adjustment of the basket of currencies that compose the net external debt (-0.2 p.p.) and the acknowledgement of assets (-0.1 p.p.).
The gross debt of General Government (Federal Government, INSS, state and municipal governments) reached R$4,113.9 billion in May (68.6% of GDP), rising by 0.9 p.p. of GDP compared to the previous month.