Indebtedness

The indebtedness, referring to loans and financing in Brazil and abroad, was R$ 64.713 million in Consolidated, as shown below:

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  (R$ Million)
31.12.2008 Law 11.638 31.12.2007 Δ%
Short-term indebtedness(1) 13.859 8.960 55
Long-term indebtedness(1) 50.854 30.781 65
Total 64.713 39.741 63
Cash and cash equivalents 15.889 13.071  
Net indebtedness(2) 48.824 26.670 83
Indebtedness/(Net indebtedness+Shareholders’ equity)(1) 26% 19% 7
Total liabilities, net(1)(3) 277.665 219.590 26
Capital structure (net thrid-party capital / net total liabilities) 50% 48% 2
  • (1) Includes commitments with the transfer of benefits, riscs and controls of assets.
  • (2) Total debt less cash and cash equivalents.
  • (3) Total liabilities net of cash / financial investments.
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  (US$ Million)
12.31.2008 Law 11.638 31.12.2007 Δ%
Short-term indebtedness(1) 5.930 5.058 17
Long-term indebtedness(1) 21.760 17.378 25
Total 27.691 22.436 23

The net indebtedness of the Petrobras System increased 83% in relation to 2007, as a result of the depreciation of the Real in the year, as well as raising of funds on the domestic and foreign markets, associated with the use of funds in an intensive investment program.

The level of indebtedness, measured through the net debt/EBITDA index increased from 0,53 at December 31, 2007 to 0.85 at December 31, 2008. The capital structure is represented by a 50% third party capital interest, an increase of 2 percentile points when compared to December 31, 2007.