The ratio of public debt to GDP fell from 125.09% at the end of Q1 to 122.22% at the end of June, the lowest level since Q1 2012, when the weight of public debt in GDP stood at 118.2%.
On 23 July, IGCP the treasury and public debt management agency indicated that the decrease in the State debt in June was due "essentially to a reduction in the balance of Treasury Bonds (OT)", after the amortization of an OT line of €8.1 billion.
The Government has a target of 118.6% for the public debt ratio to GDP for this year and to meet it, it will be necessary for public debt to fall by 3.6% in the second half of the year.
At the beginning of this month, the Bank of Portugal published revised figures for the public debt, as a result of a new version of Eurostat's deficit and debt calculation methodology which now includes interest capitalised on savings certificates.
According to the central bank, with this revision, the value of debt as a percentage of GDP in 2018 rose from 121.5% to 123.6% of GDP.
On August 9, the Minister of Finance, Mario Centeno, admitted that when the Government has to set new targets for the public debt ratio, within the State Budget for 2020,"obviously" it will do so.