Ireland’s debt problem ‘overstated’

The Bank of Ireland’s study on the island’s wealth claims that despite household debt levels, Eire’s economy should continue to grow.

“Much has been made of the level of indebtedness in the Irish economy, with the pace of growth in debt much higher than in many other countries,” commented the report’s author, Pat O’Sullivan.”

“While debt as a proportion of disposable income has increased from 89 per cent to 140 per cent in the last five years, the level of wealth provides an enormous cushion to borrowers.”

His report was written as Ireland celebrates a decade of economic growth as it attracts investors to the region and continues to pick up large EU subsidies.

Like its neighbour the UK, Ireland has become concerned about rising debt and credit levels amongst its consumers.

However, Mr O’Sullivan stated that he believes that Ireland’s debt levels, while rising, are manageable as the Irish were saving, unlike their neighbours.

He highlighted that while the Irish were putting away 14 per cent of their disposable income into savings, which could help them with debt and financial problems, Britons were only saving five per cent.