Malta: National debt falls in relation to GDP

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Government Debt stood at 43.1 percent of Gross Domestic Product in 2019, the lowest share in four years. Figures by the National Statistics Office show that national debt reached €5.6 billion last year, an increase of €51 million from 2018 where the total comprised 45.6 percent of GDP.

Over 86 percent of debt was held in Debt Securities, which include Treasury Bills and Government Stocks. The other main debt instruments were Loans (7%) and Currency (6.7%).

Financial Corporations were the biggest creditor, holding over €3.3 billion of Government Debt, making up 25.5 percent of GDP. The figure was almost €92 million less from the previous year. At less than €120 million, Non-Financial Corporations held the smallest share of debt but represent a rise of 52 percent compared with 2018, the highest rate of increase among sectors.

More than 53 percent of debt by initial maturity in 2019 was issued with a maturity of 15 to 30 years, exceeding €3 billion in total. The average remaining maturity of total debt was 8 years 10 months, the same level as in 2018 but 10 months shorter than in 2016.

Meanwhile, Government guarantees on borrowing amounted to €990 million, or 7.5 per cent of GDP, down by €80 million from 2018. The Non-Financial Corporations sector accounted for 73 percent of Government guarantees in 2019.

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