The Debt Bulletin of the Region was released today, in which it is possible to observe that the gross debt of the Regional Public Administration increased by 144.6 million euros, at the end of the first half of this year, compared to the end of the previous quarter, standing at 5,081.0 million euros.
Compared to the same period last year, debt fell by 2.6 percentage points, equivalent to minus 133.9 million euros. “Excluding the effect of financing induced by the pandemic, the value of public debt from the perspective of Maastricht now stands at 4,592.4 million euros,” explained the Regional Secretariat for Finance.
According to the ministry, at the end of the 2nd quarter of 2024, the debt-to-GDP ratio is significantly lower in the Region compared to the country. In fact, in the 2nd quarter of 2024, the debt ratio was 73.1% in Madeira and 100.6% at the national level.
It can also be seen that, in the 1st quarter of 2024, the debt-to-GDP ratio of the Region (71.0%) was lower both in relation to the Euro Area (88.7%), the EU27 (82.0%), and Portugal (99.4%).
In turn, Madeira’s overall debt at the end of the 1st half of 2024 amounted to 5,616.3 million euros, of which 5,131.2 million euros (91.4%) were allocated to the Regional Public Administration (APR).
“The value of the Region’s overall debt, recorded on the 30th of June 2024, shows a decrease of 1,019.8 million euros compared to that observed at the end of 2012 (i.e., -15.4%). Compared to the previous quarter, there was an increase of €114.2 million (+2.1%) explained by the refinancing operations contracted in May 2024, for €225 million, intended for the amortization of APR’s debt.
Compared to the same period of the previous year (June 2023), there was a decrease in overall debt of 149.5 million euros (i.e., -2.6%), resulting from the decrease in the financial debt of the APR and SERAM affects companies not reclassified within the perimeter of the APR”, justifies the tutelage, adding that, “if, in the amount of 5,616.3 million euros, we exclude the value of the COVID-19 loan (458.0 million euros, contracted in the last quarter of 2020) and the value of the amortization of the loan of the Economic and Financial Adjustment Program of the Autonomous Region of Madeira (PAEF-RAM), suspended and not amortized in January 2021 (to the amount of 30.6 million euros), the value of the overall debt of the Autonomous Region of Madeira decreases to 5,127.7 million euros, i.e., -1,508.4 million euros (-22.7%) compared to 2012.”
Overall, “the figures presented reflect the sustainability of the Region’s public finances and the consolidation of a trajectory that has been marked by a continuous and consistent adjustment process, despite the adverse effects of the COVID-19 disease pandemic and the military conflicts (Russia-Ukraine and Israel/Palestine), which induced the need to take additional measures of an extraordinary nature to mitigate these effects,” concludes the Secretary of Finance.
Samantha Gannon
info at madeira-weekly.com
