Germany reduces total debt by 1.9 pct in last year-stats office
BERLIN Dec 19 (Reuters) - Germany reduced its total federal, state and local debt by 40 billion euros to 2,024 billion euros in the year to the end of September, the federal statistics office said on Thursday.
In contrast to other euro zone countries that have struggled with rising debt, Germany's public sector debt was reduced by 1.9 percent in the year to the end of the third quarter, the office said.
That was largely due to some bad banks selling many of their toxic securities and debt. Lower risk in the portfolio means that they can make fewer provisions, reducing the burden on taxpayers and the treasury.
Germany's total debt, nevertheless, is still well above the 60 percent of gross domestic product threshold. Private economists estimate Germany's debt ratio at 79 percent this year from 82 percent in 2012.
The statistics office said the federal government's debt fell by 12.3 billion euros, or 1 percent, to 1,270 billion euros in the year to September 30. The 16 states reduced their total debt by 28.3 billion euros, or 4.4 percent, to about 620 billion euros.
The local communities, however, saw their total debt rise by 600 million euros, or 0.5 percent, to 133.4 billion euros. (Reporting Rene Wagner; Writing by Erik Kirschbaum; Editing by Mike Collett-White)
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