Brasília, March 26, 2004 (Agência Brasil) - The net debt of the public sector closed the month of February at R$ 926.7 billion, the equivalent of 57.6% of the Gross Domestic Product (GDP). There was nominal growth in comparison with January's debt of R$ 921.9 billion, but, in terms of the GDP, the ratio was lower than the 58% registered in January, as evidenced in the Fiscal Policy report released today by the Central Bank.

The impact of the currency appreciation that occurred during the month contributed to a R$ 2.4 billion reduction in the amount of the debt (0.15% of the GDP). So far this year, the proportion of the net debt has decreased 0.54% in relation to the GDP. The need to obtain credit and the overall depreciation of the currency added 0.81%, while the effect of GDP growth was responsible for a 1.38 % drop.

Gross government debt rose R$ 10.1 billion in February, raising the total to R$ 1.252 trillion, as against R$ 1.242 trillion in January. In terms of the GDP, there was a reduction, from 78.1% to 77.9%.

Translator: David Silberstein