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Buyback program

In January 2006, the National Treasury implemented the Buyback Program, that consists of buybacks of sovereign debt bonds. This program is an important instrument of external liability management that allows the Treasury to improve its external curve and strength the benchmark points.

Initially, the objective of the program was to reduce the concentration of shorter term maturities, while increasing the Federal Public Debt (FPD) average term and, consequently, reducing refinancing risk. From 2007 on, the Program began to seek interest rate curve improvement through reductions in the bonds outstanding that does not correspond to the current funding cost of the Republic. As a result, the profile of the curve is improved, with its liquidity concentrated on the benchmarks. The consequence is a greater predictability of FPD service payments, what decreases the refinancing risk.

Buyback Program Results

The results of the Buyback program are released bimonthly at the Monthly Debt Report.