The Portuguese non-financial sector indebtedness is on the rise again, after a considerable fall in the month of June. The total of public debt reached €721.9 bn according to the data released this Wednesday by the Bank of Portugal (BdP). This represents 367.2% of the wealth created by the country.
The report showed that “the rise in public sector indebtedness was reflected in an increase in financing granted by the financial sector and by private individuals, partly offset by a decrease in external financing and in financing obtained from the general government.”
Last months’ rise was induced by an increase in the non-financial sector, in which indebtedness reached €318.7 billion, a difference of €700 million in comparison to the month of June. During that month, the Portuguese Treasury and Debt Management Agency (IGCP) auctioned long-term treasury bonds (10 and 16-year bonds), capturing with this transaction around €950 million. It yielded €1.750 million in treasury bills and €1 billion in floating rate treasury bonds.
Indebtedness on the rise
As for the private sector, indebtedness remained virtually unchanged from the previous month standing at a €403.2 bn value.
The non-financial debt represented, roughly, five times the gross wealth produced by the Portuguese in one year. In June, the public and private debt stood at 367.2% of GDP — last year it was above 380% of GDP.