I - Fiscal results
The consolidated public sector registered a primary surplus of R$39.6 billion in October. Central Government, regional governments and state-owned companies posted respective surpluses of R$39.1 billion, R$296 million and R$166 million.
In the year, the cumulative primary result reached a deficit of R$45.9 billion, compared with a deficit of R$20 billion in the same period in 2015. Over the 12-month period, the cumulative deficit reached R$137.2 billion (2.23% of GDP), falling by 0.85 p.p. of GDP compared with the previous month.
Nominal interests appropriated on an accrual basis reached R$36.2 billion in October, compared with R$40.5 billion in September. This trajectory was due to the lower number of working days and increased gains with foreign exchange swap operations in the month (R$2.4 billion, up from R$1.1 billion in September). Cumulative nominal interests in the year totaled R$331.2 billion, compared with R$426.2 billion in the same period of the previous year. In twelve months, nominal interests totaled R$406.8 billion (6.61% of GDP), increasing by 0.26 p.p. of GDP when compared to September.
The nominal result, which includes the primary result and nominal interests appropriated on an accrual basis, posted a surplus of R$3.4 billion in October. In the year, the nominal deficit totaled R$377.2 billion, compared with a deficit of R$446.2 billion in the same period of the previous year. Over the 12-month period, the nominal result posted a deficit of R$544 billion (8.83% of GDP), falling by 0.59 p.p. of GDP against September.
The nominal surplus in the month reflected a reduction of R$8.3 billion under the net bank debt, partially offset by increases of R$2.6 billion in the securities debt, R$1.5 billion in other domestic financing sources, including the monetary base, and R$913 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$2,909.3 billion (47.2% of GDP) in October, falling by R$11.6 billion compared with the previous month. This result reflected net redemptions of R$35.6 billion, a decline of R$0.3 billion, due to exchange rate appreciation and incorporation of interests totaling R$24.3 billion.
Items worth highlighting were net redemptions of R$74.9 billion in LTN and R$0.9 billion in NTN-C; coupled with net issuances of R$21.3 billion in LFT, R$14.8 billion in NTN-B and R$4.8 billion in NTN-F.
The participation by indexing factors registered the following evolution in relation to September: the percentage of exchange-indexed securities remained stable at 0.4%; Selic-indexed securities rose from 20.1% to 20.8%, due to net issuances of LFT; fixed-rate securities fell from 28.6% to 27.1%, as a result of net redemptions of LTN; and inflation-indexed securities rose from 24.1% to 24.6%, due to net issuances of NTN-B. The participation of repo operations rose from 26.5% to 26.9%, showing net purchases of R$1.7 billion.
In October, the maturity structure of the securities debt on the market was as follows: R$0.1 billion, 0.004% of the total, maturing in 2016; R$426.8 billion, 14.7% of the total, maturing in 2017; and R$2,482.3 billion, 85.3% of the total, maturing as of January 2018.
At the end of October, the total net exposure in exchange swap operations reached R$89.7 billion. The result of these operations in the period (difference between the yield of the Interbank Deposit and the exchange variation plus coupon) was favorable to the Central Bank by R$2.4 billion.
III - Public sector net debt
The public sector net debt (PSND) reached R$2,722.9 billion (44.2% of GDP) in October, rising by 0.1 p.p. of GDP when compared with the previous month.
In the year, the PSND/GDP ratio increased by 8 p.p., reflecting the impact from the incorporation of interests (increase of 5.4 p.p.), exchange rate appreciation of 18.5% (increase of 3.6 p.p.), the primary deficit (increase of 0.7 p.p.), the effect of nominal GDP growth (decrease of 1.5 p.p.) and the parity adjustment of the basket of currencies that compose the net external debt (decrease of 0.2 p.p.).
The Gross Debt of the General Government (Federal Government, INSS, state and municipal governments) reached R$4,330.5 billion in October (70.3% of GDP), falling by 0.4 p.p. of GDP when compared with the previous month.