The Governor of the Central Bank has warned that if lending continues at its current rate, Ireland could become one of the most indebted countries in the eurozone within a few years.
John Hurley made his remarks at the publication of the bank's Annual Report this morning.
The latest statistics show that in the year to May, there was an increase of 27.5% in residential mortgage lending. The rate of private sector credit growth in Ireland is four times the eurozone average.
The report also forecasts that the economy will grow by just over 4% this year, which is higher than previously forecast.
The bank also warns that the success the economy has had in attracting foreign investment could be undermined if inflation were to pick up again.
The report further shows the bank paid a surplus of €321.7m to the Exchequer for 2003.
