Brasília – Foreigners’ share in Brazilian government bonds shrank in March, according to the Monthly Debt Report – Federal Public Debt, released this Friday (27) by the National Treasure Secretariat of the Ministry of Finance.
The report showed that the share of non-resident investors went from 12.39% in February to 11.84% in March. In nominal value, investments went from BRL 428.32 billion (USD 127.13 billion) to BRL 415.17 billion (USD 123.22 billion) in March.
Foreign participation used to be greater. In 2014, their share stood at 18.6% in 2015 and climbed to 18.8% in 2016, declining to 14.3% in 2016 and to 12.1% in 2017.
Márcia Tapajós, coordinator of the National Treasure Public Debt Operations, believes that the drop in the share held by these investors is connected to SELIC, the benchmark interest rates, currently in its lowest historic level, 6.5% per year. This reduces part of interest rates paid by the Treasure to investors, turning the business less attractive.
Public bonds are issued by the National Treasure to finance the public debt. In exchange for loaning the government money, investors get in return certain profitability, which varies according to the bond acquired.
Translated by Sérgio Kakitani
