Malta’s Government debt climbs to €10.6 billion in 2024, now 47.4% of GDP

Malta’s general Government debt reached €10.65 billion by the end of 2024, representing 47.4 per cent of the country’s Gross Domestic Product (GDP), according to the latest figures released by the National Statistics Office (NSO). This marks an increase of €817.7 million over the previous year.

Financial corporations remained the largest holders of Maltese Government debt, accounting for 54.8 per cent in 2024. This was followed by households and non-profit institutions serving households (NPISH) at 22 per cent – a notable increase of 6.4 percentage points since 2021. Meanwhile, the share held by foreign creditors – classified as “Rest of the World” – declined to 21.2 per cent, down from 23.9 per cent in 2021. Non-financial corporations held a minor share of two per cent.

This changing composition signals a shift towards more domestic debt ownership, especially among retail investors and non-profits.

Debt instruments

Malta continues to rely heavily on debt securities such as Malta Government Stocks and Treasury Bills, which make up 86.5 per cent of total debt (€9.2 billion). This is by far the preferred borrowing instrument, with the remainder split between loans (9.5 per cent) and currency – including Government retail savings bonds – at four per cent.

Notably, the largest increase in 2024 came from Malta Government Stocks, which rose by €706.3 million. Conversely, Government-issued retail savings instruments saw a decline of €25.8 million, possibly indicating lower take-up by the public or fewer new issuances.

Cost and maturity

The apparent cost of debt rose slightly to 2.6 per cent in 2024, up from 2.3 per cent in 2023, reflecting the prevailing interest rate environment. Despite this, Malta’s debt profile remains relatively long-term and stable.

Approximately 26.5 per cent of all debt was issued with an initial maturity of 15 to 30 years. The average remaining maturity of all outstanding Government debt stood at eight years and four months, a slight extension over the previous year.

This long-term outlook may help insulate the country from short-term refinancing risks, particularly in an era of interest rate uncertainty across the eurozone.

At market value, the Government’s debt stood at €10.54 billion, slightly lower than its nominal value of €10.65 billion. This reflects price fluctuations in Government securities as influenced by market demand, inflation, and monetary policy shifts.

Guarantees on the decline

The Government’s contingent liabilities – primarily in the form of loan guarantees – fell to €954.8 million in 2024, down from €1.14 billion the previous year. This accounts for 4.2 per cent of GDP and is largely directed toward non-financial corporations (66.1 per cent), followed by financial corporations (29.1 per cent).

Although not part of the formal debt calculation under Maastricht criteria, these guarantees represent potential future obligations and are closely watched by financial analysts.

While Malta’s debt level remains well below the EU’s 60 per cent threshold, its upward trend reinforces the importance of sound fiscal management, especially in light of increasing expenditure pressures and global economic uncertainties.