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Household debt is at its lowest level

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Household debt as a proportion of disposable income is now at its lowest level in 13 years, data from the Central Bank shows.

Household debt versus disposable income is falling at the fastest rate in the European Union, at 10.2 percentage points over the last 12 months.

Debt as a proportion of disposable income now stands at 145.2%, its lowest level since the three months to the end of September, 2004.

Irish households remain the fourth-most indebted in the European Union.

Private sector debt as a proportion of GDP fell by 17.4 percentage points over the quarter to 281.3% This was its lowest level since the beginning of the financial crisis.

The debt-to-GDP ratio of Ireland’s NFCs was 126.2 percentage points above the Eurozone average of 104.2pc in the first three months of this year.

This ranks Ireland as the second most indebted amongst EU countries.

Luxembourg and Cyprus, both of which also have very large MNCs relative to the size of their economies, were the most indebted and third most indebted.