Brasíla - Net government debt fell in September for the third straight month, to a total of US$ 329.7 billion (R$ 940.54 billion), equivalent to 53.7% of the Gross Domestic Product (GDP). The figures for August registered a debt of US$ 330 billion (R$ 941.313 billion), or 54% of the GDP. During the July/September quarter, the nominal reduction in the debt amounted to US$ 2.8 billion (R$ 8 billion).

The monthly report on fiscal policy was released by the head of the Economic Department of the Central Bank, Altamir Lopes, who said that last month's primary surplus of US$ 2.1 billion (R$ 6.044 billion) and foreign currency earnings of US$ 1.9 billion (R$ 5.6 billion) surpassed the US$ 4 billion (R$ 11.5 billion) in nominal interest payments, contributing to the US$ 280.5 million (R$ 800 million) reduction in the debt. As a result, the ratio between the debt and the GDP has already decreased 5% this year, according to Lopes, reflecting the growth that has occurred in the GDP and the primary surpluses.

There was a real increase, however, in gross government debt (Federal Government, Social Security, and regional governments), which attained US$ 455 billion (R$ 1.299 trillion, or 74.3% of the GDP) in September, compared with US$ 453 billion (R$ 1.291 trillion, or 74.1% of the GDP) in August.

Agência Brasil
Reporter: Stênio Ribeiro
Translator: David Silberstein
10/29/2004