MercoPress. South Atlantic News Agency

Brazil’s total federal debt stands at just over a trillion dollars, said the Treasury

Debt Coordinator Fernando Garrido said Brazil continues to believe in increased foreign investor participation over time

Brazil's total federal debt rose in September as the Treasury issued new debt at home and abroad, the government reported this week. The country's federal debt load increased 2.3% in the month to Reais 1.809 trillion (1.02 trillion dollars), from Reais 1.768 trillion in August, the Treasury said in a statement.

Brazil's domestic debt increased 1.8% to Reais 1.724 trillion, while the outstanding federal debt denominated in foreign currencies increased 12.4%, to Reais 84.8 billion.

Non-resident participation in the debt fell to Reais 194.65 billion, or 11.29% of the total, in September, from Reais 198.95 billion, or 11.75% of the total in August.

The government isn't worried about the small decline in foreign demand for Brazil's debt, said Finance Ministry Debt Coordinator Fernando Garrido, at a press conference following the release of the information.

“This decline wasn't identified as significant or relevant,” he said. “It could be related to movements by a small group of investors. We continue to believe in increased foreign investor participation over time.”

The Finance ministry continues to evaluate the possibility of an overseas debt offer this year, but hasn't made any decisions yet about when that will happen, Garrido added.

Brazil's government has aimed to lengthen its debt profile and minimize its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.

The government reported that the average maturity of all debt fell to 3.67 years in September from 3.71 years in August, while for domestic debt it fell to 3.53 years from 3.59 years in August. The average maturity of foreign debt was unchanged at 6.56 years.

The proportion of all debt maturing in the next 12 months increased to 24.9% in September, from 23.47% in the previous month. For domestic debt the figure rose to 25.52% from 24.07% and for foreign debt it increased to 12.25% from 9.86%.

The average accumulated cost of all debt over the past 12 months increased to 12.97% in September from 12.25% the previous month.