Debt-to-GDP ratio down by 3.2 points in 2015

Statistics published by the national statistics office confirm that the debt-to-GDP ratio in malta decreased by 3.2 percentage points in 2015

The numbers fell from 67.1% in 2014 to 63.9%.

This 3.2 percentage points decrease was the highest reduction in the debt-to-GDP ratio over the last decade.

The debt-to-GDP ratio for 2015 also outperformed the European Commission Spring forecasts and the Ministry for Finance debt projections.

“The significant reduction in the debt-to-GDP ratio shows that the government is continuing to deliver on its promises in the area of public finances. This reflects the resolute way by which the government continues to look at public finances,” finance minister Edward Scicluna said.

The cost of debt, defined as the interest rate applicable to the whole nominal debt, also decreased in 2015, falling from 4.33% in 2014 to 4.12% per annum.

In a statement, the government said that in its plight to attain public finance sustainability and upgrade sovereign rating by credit rating institutions, it intends to continue reducing the debt-to-GDP ratio beyond the 60% threshold as set by the Maastricht Criteria.