Central Bank concerned about high personal debt levels
12/07/2005 - 12:01:47The Central Bank has issued a warning about high personal debt levels in Ireland and the threat they pose to the country's economic stability.
John Hurley, the governor of the bank, said "private sector credit" was growing at around 25%-a-year and Ireland was fast becoming one of Europe's most highly indebted countries.
He said the fact that interest rates were currently at an all-time low was particularly worrying in this context as any increase in rates would cause major problems for people with heavy debts.
Despite this warning, the Central Bank's annual report for last year, which was published today, said most indicators suggested the Irish economy would grow at around 5% annually over the next few years.
