Brazil federal government ended 2019 with a primary deficit of R$95.1 billion ($22.5 billion), the lowest fiscal loss in five years, the National Treasury reported. It was the sixth consecutive year that the government spending exceeded taxes and tax revenues. Only in 2014 the deficit in the Brazilian accounts managed to be lower than in 2019, when the accounts registered negative results of the order of R$23.5 billion.
Brazil’s federal public debt increased 9.5% in 2019 compared to the previous year, reaching a record R$ 4.248 million ($1.012 billion), the National Treasury Secretariat of the Ministry of Economy of Brazil reported. However, despite the increase, the 2019 Annual Financing Plan (PAF) was fulfilled, which established that the public debt could end last year between R$ 4.1 billion and R$ 4.3 billion.
Brazil may take advantage of low interest rates to issue a 20-year benchmark bond later this year if demand is sufficient, the country’s Treasury said, as it set out its 2020 debt forecasts and financing plans. Securities linked to the central bank’s benchmark Selic rate are expectred to account for between 40% and 44% of outstanding debt this year versus 38.9% last year, while fixed-rate securities will account for between 27% and 31%, compared with 31% last year.