ALONGAMENTO DA DÍVIDA PÚBLICA FEDERAL INTERNA: O QUE FOI FEITO E O QUE SE PODE ESPERAR

Abstract

The paper discusses de main outcomes of the process of extending the maturity of the Brazilian public debt that took place in the end of 1999. In November, the Brazilian Secretary of Treasury and the Central Bank of Brazil announced a set of measures in order to change the market for new issues of public securities and to stimulate the market for- on the run public securities. The paper shows the aim of the Treasury and the Central Bank was partially attained: on the one hand, the average maturity was in fact extended. On the other hand, however, the share of non-indexed bonds on the total debt did not increase as expected. On the contrary, by the end of 2001 this share decreased in comparison to the beginning of 2000. The paper also shows this partial attainment was mainly due to an ill economic environment than to the partial implementation of the measures announced in the end of 1999. Thus, one should not expect huge changes in the management of the public debt for the years to come unless some change in this environment occurs.