National debt now 40% below EU average

The national debt fell by euro 3.3 billion to euro 36

The national debt fell by euro 3.3 billion to euro 36.5 billion last year according the National Treasury Management Agency’s (NTMA) annual report published today.

Ireland now has second lowest debt ratio among EU countries, almost 40 per cent below the EU average. Only Luxembourg has a lower level of indebtedness in the EU.

The decrease in the debt principally reflects the exchequer budget surplus of euro 3.2 billion at the end of 2000, the NTMA said.

The national debt per person at work was euro 21,348 at end of 2000 compared to euro 28,086 at the end of 1990.

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The National Debt as a percentage of GNP decreased by 11 percentage points to 42 per cent at end 2000 from almost 53 per cent a year earlier.

The cost of servicing the debt has also fallen in recent years. Interest on the debt now absorbs only 7.6 per cent of tax revenue compared to almost 28 per cent at the beginning of the decade.

The NTMA said the National Pensions Reserve Fund, which is designed to meet the cost of social welfare and public service pensions over the long term now stands at euro 7 billion.