Latest debt figures published by NSO confirm that the debt-to-GDP ratio decreased by 3.2 percentage points in 2015, falling from 67.1 per cent in 2014 to 63.9 per cent, the government said in a statement. 

The 3.2 percentage point decrease marked the highest reduction in the debt-to-GDP ratio over the last decade.

The debt-to-GDP ratio for 2015 also outperformed the European Commission Spring forecasts and the Ministry for Finance debt projections.

Minister for Finance Edward Scicluna remarked: “The significant reduction in the debt-to-GDP ratio shows that the Government is continuing to deliver on its promises in the area of public finances. This reflects the resolute way by which the Government continues to look at public finances”.

The cost of debt, defined as the interest rate applicable to the whole nominal debt, also decreased in 2015, falling from 4.33 per cent in 2014 to 4.12 per cent per annum.

The Government intends to continue reducing the debt-to-GDP ratio beyond the 60 per cent threshold as set by the Maastricht Criteria. This would not only help in attaining public finance sustainability but will augur well for an upgrade in sovereign rating by credit rating institutions.