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The central bank also reveals the total stock of debt securities issued by public administrations. In December, the total nominal value of debt securities issued by public administrations was 170.5 billion euros, 4.4% less than at the end of the previous year.
In 2023, public debt securities rose in value by 7.9 billion euros, an evolution that contrasts with the devaluation of 35.4 billion euros that occurred in 2022.
The data comes from Banco de Portugal (BdP), which also states that at the end of 2023, the total value of securities issued by resident entities was 473.5 billion euros, 18.7 billion euros more than in the previous year. end of the previous year. In 2022, the stock of securities issued by resident entities had decreased by 36.2 billion euros.
Justifying these variations is, on the one hand, the appreciation of public debt securities, of 7.9 billion euros; the appreciation of listed shares, of 2.2 billion euros (which compares with 2.4 billion euros in 2022); share issues exceeded amortizations, by 9.5 billion euros (when in the previous year they had exceeded them by 4.8 billion); the fact that debt securities issues from non-financial companies exceeded repayments, by 3.0 billion euros (1.0 billion euros in 2022); and issuances of financial sector debt securities exceeded repayments, by 2.6 billion euros (in 2022, repayments had exceeded issuances by 2.4 billion euros).
Conversely, the evolution takes into account the fact that repayments of public administration debt securities have exceeded issuances, by 9.9 billion euros (1.2 billion euros in 2022). The difference between repayments and issuances of government debt securities was the highest recorded since 2011, the year in which the Economic and Financial Assistance Program (PAEF) was agreed between the Portuguese authorities, the European Union (EU) and the International Monetary Fund (IMF), highlights the central bank.
Securities issues (shares and bonds) minus amortizations reached 5.2 billion euros last year.
Scheduled repayments of debt securities
With regard to scheduled repayments of debt securities, Banco de Portugal says that at the end of the year, 12.8% of the amount of outstanding debt securities had repayments scheduled for the following 12 months.
At the end of December, amortizations of 35.1 billion euros were planned for the following 12 months, which corresponds to 12.8% of the 275.2 billion euros of outstanding debt securities on that date.
In detail, amortizations of public administration securities are scheduled, in February and October 2024, of 6.0 and 2.9 billion euros, respectively. But also financial sector securities, between October and December 2024, of 6.8 billion euros; and securities of non-financial companies, in January 2024, of 4.6 billion euros.
“In non-financial companies, the expected amortizations corresponded, to a large extent, to commercial paper, a short-term financing instrument widely used by Portuguese companies and which is usually subject to renewal, that is, amortization accompanied by a new issue, also short term. It is, therefore, a normal situation to systematically record a high value of amortizations scheduled for 30 days after the end of the month”, highlights the Bank of Portugal.
The central bank also reveals the stock total debt securities issued by public administrations. In December, the total nominal value of debt securities issued by public administrations was 170.5 billion euros, 4.4% less than at the end of the previous year. At the end of 2023, less than 30% of the securities issued by the public administration sector were in the non-resident portfolio.
The weight of investment by the non-resident sector in these debt securities decreased, and stood below 30% (29.8%) for the first time since the beginning of the series (in 2010), reveals the BdP. On the other hand, the weight of public administration investment in securities issued by the sector itself increased, from 8.7% at the end of 2022 to 13.8% at the end of 2023, he adds.
