Debt at 72.1% of GDP in 2012

The National Statistics Office (NS0) today said that as of the end of last year, the country's debt stood at €4.9 billion or 72.1% of GDP.

The EU's Stability and Growth Pact (SGP), which ensures that Member States adopt appropriate policy responses to correct excessive deficits and levels of debt sets a 60% threshold of debt to GDP.

In 2012 the sector with the biggest share of debt was the Financial Corporations sector, with 60.8%, followed by the Households and Non-Profit Institutions serving households (NPISH) with 31.7%.

The share of non-residents was 5.8%, up from 4.5% in 2011. The Non-Financial Corporations sector holds 1.7% of the debt.

The 'securities other than shares', which includes the Malta Government Stocks and Treasury Bills, is by far the preferred debt instrument for General Government, with €4,476.9 million or 91.9% of the total debt in 2012.

Other debt instruments are the 'loans' and 'currency' with 7.1% and 1.0% respectively.

Almost all the debt owed by the General Government Sector is in national currency. The debt issued in foreign currencies is decreasing and in 2012 it amounted to €0.9 million.

The apparent cost of debt, which is the interest rate applicable to the whole nominal debt, was 4.49% in 2012, a marginal drop from 4.53% in 2011.

For 2012 this is estimated at €5,286.1 million compared to the nominal value of €4,871.2 million.

For 2012, the time structure of the debt by initial maturity shows that €1,873.6 million, or 38.5%, was issued with a maturity of 15 to 30 years.

This was followed with debt issued for 10 to 15 years (23.4%), 1 to 5 years (15.4 per cent) and 7 to 10 years (11.1%). The average remaining maturity of total debt for 2012 increased to seven years two months from six years three months in 2011.

In 2009 the average remaining maturity was five years three months, showing that debt is being issued on a longer term basis.

The biggest share of debt by remaining maturity in 2012 is in the 1 to 5 year category with €1,786.0 million, followed by the categories 7 to 10 years (€971.1 million) and 15 to 30 years (€814.2 million).

The Government guarantees on borrowing amounted to €1,186.0 million in 2012, an increase of €117.1 million over the comparative period of 2011.

The majority of Government guarantees are issued towards the Public Non-Financial Corporations, which account for 77.9% of the total guarantees.

The data in this release are consistent with the first notification for 2013 of the gross General Government nominal debt reported under the Maastricht Treaty.