Brazil's public debt interest bill surged in the 12 months ending March, central bank data showed on Friday, underscoring the challenges of debt control amid high borrowing costs.
The total nominal interest of the public sector reached 65.3 billion reais ($13 billion) in March and now accounted for 6.85% of GDP - 693.6 billion reais - over the 12 months, against 4.46% in the same period last year.
This marks the highest percentage over GDP recorded in
the central bank's series since June 2017.
The government of President Luiz Inacio Lula da Silva has consistently called for a reduction in basic interest rates, but the central bank remains cautious about the dynamics of consumer prices and has maintained its benchmark interest rates at a six-year high of 13.75% since September.
According to central bank data, Brazil's government debt
as a share of the gross domestic product remained steady at
73.0% in March from the same level in February, with net debt
redemptions and nominal GDP growth offsetting the higher debt
interest charges.
The Brazilian public sector posted a primary deficit of
14.182 billion reais ($2.85 billion) for the month, larger than
the 9.028 billion reais shortfall expected by economists polled
by Reuters.
($1 = 4.9772 reais)
($1 = 4.9776 reais)
(Reporting by Marcela Ayres; Editing by Steven Grattan)
