Borrowers in Ireland - one of Ireland's smallest countries - have racked up one of its biggest debt mountains, topping a trillion dollars, according to figures released by the Bank for International Settlements.
Irish borrowers, including a fast-growing international financial services industry based here, owe foreign banks almost $1.2 trillion - roughly half as much as those in Germany and almost as high as Spain's $1.3 trillion.
It puts Ireland in a trillion-dollar club, shoulder to shoulder with five of Europe's biggest economies, including Germany, France and the United Kingdom.
The Netherlands - totting up more than $1.5 trillion - is the only other small European country to make it into the seven-strong circle.
The statistics present a snapshot at the end of June, before the collapse of Lehman Brothers worsened a crisis in interbank lending - often crucial to refinance such loans.
The figures are distorted by the fact that many foreign banks and financial services companies have set up shop in Ireland, attracted in part by low taxes. Half of the Irish loans are to the non-bank private sector, which includes financial services firms.
A spokeswoman for the Central Bank said: "One has to take into account when looking at these statistics that Ireland has a very large financial services industry."
But one expert with detailed knowledge of the figures who asked not to be named said the extent of the borrowing could prove problematic. "How far is Ireland's financial centre insulated from the real economy?" he said.
"Ireland is an Anglo-Saxon economy in the middle of the euro zone," said Alan McQuaid, chief economist with broker Bloxham. "They tend to borrow and spend as if there's no tomorrow. When the boom started, we just partied and borrowed. Now the Irish economy is on its knees."
Reuters