PARIS (MNI) – Total government debt in the Eurozone reached E8.3
trillion in the first quarter of 2012, up more than E111.2 billion from
4Q’s level, while its share of GDP climbed to 88.2% from 4Q’s 87.3%
level, Eurostat said Monday.
Compared to 1Q 2011, government debt was up by more than E355
billion. At that time, the debt-GDP ratio stood at 86.2% – already well
above the theoretical Maastricht ceiling of 60%.
The breakdown of 1Q debt showed currency and deposits of E234.677
billion or 2.8% of GDP, securities other than shares of E6.608 trillion
or 78.3% of GDP, and loans of E1.486 trillion or 17.8% of GDP.
Inter-government lending related to the debt crisis amounted to
E111.026 billion in 1Q or 1.2% of GDP.
Debt-GDP ratios across countries in 1Q ranged from lows of 6.6% in
Estonia and 20.9% in Luxembourg, to highs of 108.5% in Ireland, 111.7%
in Portugal, 123.3% in Italy and 132.4% in Greece.
The European Commission expects the Eurozone debt ratio to climb
to 91.8% this year and to 92.6% next year. The projections were revised
up this spring to take account of downward revisions to GDP forecasts.
Yield spreads among peripheral countries with large debt or
deficits rose to near record levels early Monday as market worries about
a possible Greek Eurozone exit and about the ability of Italy and Spain
to continue to fund themselves increased.
The Spain 10-year spread vs Bunds soared to 637 basis points, while
the Italian bond yield spread climbed to 525 basis points.
— Paris bureau: +331 4271 5540; email: paris@marketnews.com —
[TOPICS: MT$$$$,M$X$$$,MGX$$$]
