Commercial banking once once more plays a preponderant role in financing the General State Budget (OGE), with banks BAI and BFA in the lead, becoming holders of more than 30% of domestic public debt
The Annual Debt Plan for the year 2024 shows that the State will seek 7.50 billion dollars through external debt and 4.66 billion dollars through internal debt.
Overall, there are 12.16 billion dollars, with exactly 2.9 billion dollars more in external debt than internally. However, this 2024 Annual Debt Plan shows that the Ministry of Energy and Water is the Government sector that will receive the largest share of resources obtained through external debt, receiving 45% of the disbursements that will come from it, followed by the Ministry of Health, which will receive more than 11% of disbursements.
Data from the Ministry of Finance show that the largest share of external debt will be through contractual debt, where US$7.20 billion will be obtained this way. In terms of external debt, only 0.30 billion dollars will be obtained through the securitized debt mechanism, that is, the State prefers to cut almost 100% the sale of public debt securities.
Overall, there are 12.16 billion dollars, with exactly 2.9 billion dollars more in external debt than internally. However, this 2024 Annual Debt Plan shows that the Ministry of Energy and Water is the Government sector that will receive the largest share of resources obtained through external debt, receiving 45% of the disbursements that will come from it, followed by the Ministry of Health, which will receive more than 11% of disbursements.
Data from the Ministry of Finance show that the largest share of external debt will be through contractual debt, where US$7.20 billion will be obtained this way. In terms of external debt, only 0.30 billion dollars will be obtained through the securitized debt mechanism, that is, the State prefers to cut almost 100% the sale of public debt securities in foreign currency abroad, as has been the case. guarantee the Minister of Finance, Vera Daves.
Commercial banking with 30% of domestic debt
With regard to external debt, a completely different strategy was adopted, as here, 5.20 billion dollars will be obtained through the securitized debt option. Most of the debt made internally will be made through the sale of treasury bonds.
Here, Treasury Bonds (OT) will represent 64%, as indicated by the data, while Treasury Bills (BT) will represent 23%, as shown by PAE data. Meanwhile, commercial banking once once more plays a preponderant role in financing the General State Budget (OGE), with banks BAI and BFA in the lead, becoming holders of more than 30% of domestic public debt.
BY: Ladislau Francisco
