The increase in public sector indebtedness, as calculated under the terms of the 1992 Maastricht Treaty, the measure used by the European Commission when assessing if a euro-zone member state is keeping to the rules, “reflected, for the most part, positive net emissions of debt in the amount of 2.5 billion euros,” the Bank said in a statement.

General government gross debt according to the convergence criteria set out in the European Union's Maastricht Treaty comprises currency, bills and short- term bonds, other short- term loans and other medium- and long- term loans and bonds.

“The growth in public debt was accompanied by a less accentuated growth in assets in deposits (1.8 billion euros), so that public debt net of central government deposits increased 1.0 billion euros on the previous month, rising to 219.6 billion euros”, the Bank of Portugal said.

Earlier the Organisation for Economic Cooperation and Development released a report projecting greater public indebtedness for Portugal this year of 128.3% of GDP, remaining unchanged next. That compares with its November forecast of 127.9% for this year and 127.4% in 2017.

In its Stability Programme for 2016-2020, the government forecasts a reduction to 124.8% of GDP this year and 122.3% next.

Euro-zone member states are supposed to keep public indebtedness to no more than 60% of GDP.