Brazil's public sector gross debt rises to 76.2% of GDP in April, driven by interest payments

BRASILIA, May 30 (Reuters) - Brazil's public sector gross debt rose to 76.2% of gross domestic product in April from 75.9% the month before, driven mainly by interest payments, central bank data showed on Friday.

The public sector recorded a primary surplus of 14.15 billion reais ($2.50 billion) for the month, while economists polled by Reuters had forecast a surplus of 17.4 billion reais.

The performance brought the 12-month primary budget balance for the broader public sector - which includes state-owned companies as well as state and local governments - to a deficit equivalent to just 0.05% of GDP.

The central government alone posted a primary deficit of 0.06% of GDP over the same period, within this year's official target of a zero deficit, with a tolerance margin of 0.25% of GDP either side.

However, interest expenses remained high at 7.71% of GDP in the 12 months through April, pushing the nominal budget deficit to 7.76% of GDP.

With interest rates at a near 20-year high of 14.75% to tame inflation, and nearly half of Brazil's growing public debt linked to the benchmark Selic rate, the government is paying steep interest costs to finance spending not covered by revenue as well as to roll over its debt.

($1 = 5.6669 reais)