I - Fiscal results
The consolidated public sector registered a primary deficit of R$12.8 billion in July. The central government, regional governments and state-owned companies posted respective deficits of R$11.9 billion, R$334 million and R$629 million.
In the year, the cumulative primary deficit reached R$36.6 billion, compared with a surplus of R$6.2 billion in the same period in 2015. In the 12-month period, the cumulative primary deficit reached R$154 billion (2.54% of GDP), rising by 0.03 p.p. of GDP compared with the previous month.
Nominal interests appropriated on an accrual basis reached R$40.6 billion in July, compared with R$22.1 billion in June. This trajectory reflected the loss of R$1.8 billion with foreign exchange swap operations in the month, compared with gains of R$22.7 billion in the previous month. Cumulative nominal interests in the year amounted to R$213.9 billion, compared with R$288.6 billion in the same period of the previous year. In twelve months, nominal interests totaled R$427.1 billion (7.04% of GDP), falling by 0.41 p.p. of GDP when compared to June.
The nominal result, which includes the primary result and nominal interests appropriated on an accrual basis, posted a deficit of R$53.4 billion in July. In the year, the nominal deficit totaled R$250.5 billion, compared with a deficit of R$282.4 billion in the same period of the previous year. In twelve months, the cumulative nominal deficit reached R$581.1 billion (9.58% of GDP), falling by 0.38 p.p. of GDP when compared with the June's result.
The monthly nominal deficit was financed through expansions of R$88.3 billion in the securities debt, R$7.1 billion in other domestic financing sources, including the monetary base, and R$1.6 billion in net external financing, partially offset by a reduction of R$43.5 billion in the net bank debt.
II - Federal securities debt
The domestic federal securities debt, outside the Central Bank, evaluated by the portfolio position, totaled R$2,832.2 billion (46.7% of GDP) in July, decreasing by R$5.7 billion compared with the previous month. This result reflected net redemptions of R$35.9 billion, an increase of R$0.1 billion due to the exchange rate depreciation, and incorporation of interests, R$30.1 billion.
Items worth highlighting were the net redemptions of R$39.2 billion in LTN, R$6.3 billion in NTN-F, R$2.7 billion in NTN-C and R$3 billion in securitized credits; and net issuances of R$9.3 billion in NTN-B and R$6.4 billion in LFT.
The participation by indexing factors registered the following evolution in relation to June: the percentage of exchange-indexed securities remained stable at 0.4%; Selic-indexed securities fell from 19.8% to 19.7%; fixed-rate securities fell from 28.1% to 26.6%, due to net redemptions of LTN and NTN-F; and inflation-indexed securities fell from 26.4% to 26.1%. The participation of repo operations increased from 25.1% to 26.9%, showing net sales of R$79.1 billion.
In July, the maturity structure of the securities debt on the market was as follows: R$208.1 billion, 7.3% of the total, maturing in 2016; R$373.2 billion, 13.2% of the total, maturing in 2017; and R$2,250.8 billion, 79.5% of the total, maturing as of January 2018.
At the end of July, the total net exposure in exchange swap operations reached R$167.7 billion. The result of these operations in the period (difference between the yield of Interbank Deposit and the exchange variation plus coupon) was unfavorable to the Central Bank by R$1.8 billion.
III - Public sector net debt
The public sector net debt (PSND) reached R$2,571.9 billion (42.4% of GDP) in July, rising by 0.5 p.p. of GDP compared with the previous month.
In the year, the PSND/GDP ratio increased by 6.2 p.p., influenced by the incorporation of interests (+3.5 p.p.), the exchange rate appreciation of 17.1% in the period (+3.4 p.p.), the primary deficit (0.6 p.p.), the effect of nominal GDP growth (-0.9 p.p.), and the parity adjustment of the basket of currencies that compose the net external debt (-0.3 p.p.).
The General Government Gross Debt (Federal Government, INSS, state and municipal governments) reached R$4,214 billion in July (69.5% of GDP), rising by 1 p.p. of GDP compared with the previous month.