The 1 percentage point increase announced on the 4th (May 4th) already raises the stock by R$ 387.3 billion, according to Gabriel Leal de Barros
The cost of public debt should rise by R$ 580.1 billion in 12 months with the basic rate, the Selic, at 13.25% per year, a percentage estimated by the financial market for 2022. The calculation was made by the chief economist at RYO Asset, Gabriel Leal deBarrosthe request of Power 360.
The economist calculated the extra amount to be paid if the BC (Central Bank) raise the Selic rate from 10.75% (February 2022) to 13.25% per year. The 1 percentage point increase announced on Wednesday (May 4) already raises the stock by R$ 387.3 billion.
The survey was based on the debt stock, of R$ 7 trillion, registered in February. At that time, the Selic was at 10.75% per year. Because of the civil servants’ strike, the monetary authority did not disclose the March figures and said there was no forecast of publication of the data.
In February, the country’s gross debt – formed by the federal government, INSS, states and municipalities – dropped to 79.2% of GDP (Gross Domestic Product). The drop was 0.4 percentage point. The data are from BC.
Interest is at 12.75% per annum. The BC signaled that it will readjust again at the next meeting, in June. The monetary authority has raised the percentage to control the country’s inflation, which reached 11.3% in the 12-month period up to March.
The payment of interest on the debt totaled R$ 422.5 billion in the 12-month period up to February, according to the BC. Until February 2021, when the Selic was at 2% per year, the cost was BRL 316.5 billion.
The last time the Selic rate reached 13.25% per year was in January 2017. At that time, the debt stock was BRL 4.399 trillion, or 69.8% of GDP. Today the debt is R$ 3.85 trillion more expensive than it was 5 years ago.
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