The Brazilian federal government spent more than R$ 1 trillion on public debt interest in 2025, corresponding to 8.35% of Gross Domestic Product. The consolidated debt ended the year at R$ 8.635 trillion, representing an increase of approximately R$ 1 trillion compared to 2024. Nominal interest paid by the public sector totaled R$ 1.08 trillion in the 12-month period ended.
The rise in financial charges accompanies the increase in yields on long-term government bonds, which reached around 14% per year in 2026, placing Brazil among countries with one of the highest real interest rates in the world. The market attributes these levels to perceptions of risk, uncertainty, and low confidence in Brazil's economic horizon.
Otávio Fakhoury, a fixed income specialist with experience in national and international banks, explained that high interest rates tend to occur when investors start to see more risk, uncertainty, and lack of confidence in the country's economic future. This distrust has directly impacted the cost of Brazilian public debt.
