Brazil’s gross debt rose more than expected in May, central bank data showed on Tuesday, as the country’s rising interest bill pushed borrowing higher.

Debt reached 81.1% of gross domestic product, up from 80.2% in April and above the 80.7% forecast in a Reuters poll.

By the International Monetary Fund’s (IMF) metric, gross debt climbed to 94.3% of GDP, from 92.9% the previous month.

Brazil’s debt level remains well above the IMF’s projected 77.2% average for emerging and developing economies in 2026, a gap that keeps risk premiums elevated as investors demand compensation to finance growing government spending amid concerns about fiscal discipline.

Nominal interest payments totaled 107.547 billion reais ($20.7 billion) in May, lifting the 12-month interest bill to 8.48% of GDP, the highest since February 2016, when Brazil was facing a severe economic recession.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.