Latest Debt News
Irish debt problem worsening
04/01/2006 14:07:00
Ireland could soon become the eurozone country most in debt, according to estimates from Goodbody Stockbrokers.
Dermot C O'Leary, an economist at Goodbody, believes that by the end of 2006 private sector debt will be equivalent to 200 per cent of GNP, the Irish Independent reports.
He feels that it is only a matter of time before Ireland heads the debt table due to the annual growth of credit of 29 per cent.
Just last November, Irish private sector credit rose by its third highest amount ever, €5.4 billion, to reach €252.3 billion.
Mr O'Leary said: "Further ECB rate increases may be in the economy's best interests in the longer term to slow down what is clearly an excessive rate of credit growth."
Furthermore, credit problems are likely to have an impact immediately. Over Christmas, retailers reported strong trade, indicating that consumers have decided to spend more money on bargains rather than seek to save.
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