Germany’s National Debt Burden Fell to 79% of GDP Last Year, FAZ Reports

Germany’s Finance Ministry estimated the national debt burden fell to 79 percent of gross domestic product last year on lower-than-expected bad bank debts, Frankfurter Allgemeine Zeitung said in a preview of an article to be published tomorrow.

The newspaper cited Deputy Finance Minister Steffen Kampeter. Bad bank debts dropped to 8.3 percent of GDP, according to a written answer by Kampeter to questions posed by Otto Fricke of the Free Democratic Party, the FAZ said.

Kampeter said there was growth of 3 percent and 2.5 percent inflation, while new debt represented 1 percent of GDP, according to the paper.

Hypo Real Estate and Westdeutsche Landesbank were the two lenders whose debts were lower than anticipated, the FAZ reported. The figures should be confirmed at the end of the current quarter, according to the paper.

To contact the reporter on this story: Alex Webb in Frankfurt at awebb25@bloomberg.net.

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net.

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