Europe

Monday, January 16, 2012 - 02:18

Germany's Fin Min Sees 2011 Total Debt At 79% Of GDP: Press


BERLIN (MNI) - The German Finance Ministry estimates that total public debt fell below 80% of GDP at the end of last year, the daily Frankfurter Allgemeine Zeitung (FAZ) reported Monday.

According to ministry calculations, total debt fell to 79% of GDP due to a better-than-expected development of the country's bad banks, the FAZ cited from a letter of Deputy Finance Minister Steffen Kampeter to a parliamentarian. The final 2011 total debt number will be known only at the end of the quarter, Kampeter wrote.

On Thursday, Kampeter said that federal net new borrowing last year fell to E17.3 billion, way below the E48.4 billion initially projected in the 2011 budget bill.

The better-than-expected deficit trend was mainly due to strong economic growth last year, which led to higher tax revenue and lower unemployment spending and interest rate payments, Kampeter said.

--Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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