Ireland now has one of the lowest levels of national debt in the EU, according to the latest report from the national treasury management agency. During 2000, the agency cut €3.3 billion off the national debt, which now stands at €36.5 billion. The agency's chief executive, Michael Somers, predicted that even allowing for the recent slowdown in economic activity, a further €2 billion could be shaved off the national debt.
Minister for Finance Charlie McCreevy was on hand at the National Treasury Management Agency for the announcement of these results. It was good news all round. The debt/GDP ratio is also down, by 11 percentage points, at 39% - the second lowest in the EU. Interest costs were €271 million below the budget estimate.
These figures are very good - but they are to some extent historical, dating from the end of last year. With signs of a slowdown in the economy in recent months, it remains to be seen if this level of performance can be sustained in the future. Finance Minister Charlie McCreevy revealed nothing about his next budget, except that it will be framed on the basis of 2000 and beyond, not today's figures reflecting past performance.
The Agency is also expanding its activities to manage the national pension reserve fund which will total almost €8 billion by the end of the year. However, most of that will be invested abroad.
