I - Fiscal results
The consolidated public sector registered a primary deficit of R$2.1 billion in June. The Central Government posted a primary deficit of R$2.7 billion and regional governments and state-owned companies, respective surpluses of R$113 million and R$518 million.
In the year, the cumulative surplus reached R$29.4 billion, against R$52.2 billion in the same period in 2013. In terms of 12-month cumulative flows, the primary surplus reached R$68.5 billion (1.36% of GDP) as compared to R$76.1 billion (1.52% of GDP) in May.
Nominal interests, appropriated on an accrual basis, reached R$18.7 billion in June, compared with R$21.4 billion in May. The shorter number of business days and the more favorable result with foreign exchange swap operations contributed to this reduction. In the year, cumulative nominal interests reached R$120.2 billion, compared with R$118.1 billion in the same period in 2013. Over the past twelve months, nominal interests totaled R$251 billion (5.0% of GDP), for a reduction of 0.01 p.p. of GDP against the previous month.
The nominal result, encompassing the primary result plus nominal interests appropriated on an accrual basis, resulted in a deficit of R$20.8 billion in June. In the year, the cumulative deficit reached R$90.9 billion, compared to R$65.9 billion in the first half of 2013. In twelve months, the cumulative nominal deficit reached R$182.5 billion (3.63% of GDP), rising 0.15 p.p. of GDP against the previous month.
In June, it should be highlighted the expansion of R$50.2 billion in the securities debt and R$7.5 billion in the other domestic financing sources, including the monetary base, partially offset by a reduction of R$37.1 billion in the net banking debt.
II - Federal securities debt
The domestic federal securities debt, outside the Central Bank and evaluated by the portfolio position, totaled R$2,111.2 billion (42% of GDP) in June, up R$81.6 billion from the previous month. This result reflected net issuances of R$65.1 billion, a decline of R$0.2 billion resulting from the foreign exchange appreciation and incorporation of interests of R$16.7 billion
In the month, it should be emphasized net issuances of R$38.2 billion in LTN; R$10.7 billion in NTN-B; R$9.9 billion in NTN-F; and R$6.5 billion in LFT.
The participation by indexing factors registered the following composition against May: exchange-indexed securities remained stable at the level of 0.4%; Selic-indexed securities increased from 15% to 15.1%, due to issuances of LFT; fixed-rate securities increased from 31% to 32.4%, due to net issuances of LTN and NTN-F; and inflation-indexed securities rose from 29.1% to 29.2%. The share of repurchase operations dropped from 24.2% to 22.6%, reflecting net purchases of R$37 billion.
In June, the maturity schedule of the securities debt on the market was as follows: R$239.6 billion, 11.3% of the total, maturing in 2014; R$394.7 billion, 18.7% of the total, maturing in 2015; and R$1,477 billion, 70% of the total, maturing as from January 2016.
At the end of June, net exposure in foreign exchange swap operations totaled R$198.5 billion. The result of such operations (the difference between the DI yield and the exchange variation plus coupon) was favorable to the Central Bank by R$3.4 billion.
III - Public sector net debt
The public sector net debt (PSND) reached R$1,755.1 billion in June (34.9% of GDP) rising 0.4 p.p. of GDP against the previous month. The foreign exchange appreciation of 1.6% observed in the month contributed with R$11.5 billion for this growth trajectory.
In the year, the PSND/GDP ratio increased by 1.4 p.p. The appropriation of nominal interests and the 6% exchange appreciation accumulated in the year contributed to raise the ratio by 2.4 p.p. and 0.9 p.p. of GDP, respectively. Conversely, the nominal GDP growth, the primary surplus and the parity adjustment of the basket of currencies that composes of the net foreign debt contributed to reduce the ratio by 1.2 p.p., 0.6 p.p. and 0.1 p.p. of GDP, respectively.
The general government gross debt (Federal Government, INSS, state and local governments) reached R$2,941.1 billion in June, 58.5% of GDP, for a rise of 0.5 p.p. of GDP against the previous month.