The general Government debt is to be written down by 2.3 per cent, or €3.6 billion, following the detection of an accounting error.
The Department of Finance said the National Treasury Management Agency (NTMA) had notified it of a double count brought about a change in its relationship with the Housing Finance Authority.
The NTMA previously acted as an agent for the Housing Finance Agency, the liabilities of which are included in general Government debt, but now the NTMA loans directly to it.
The loans appeared in the NTMA accounts for 2010 as assets and liabilities in the Housing Finance Authority accounts. The Housing Finance Agency provides loan finance to local authorities and voluntary housing bodies for housing and related purposes.
The general Government debt is projected to increase by €25 billion to €173 billion in 2011.
“Removing the impact of this double count reduces the estimate of 2010 general government debt by €3.6 billion or 2.3 per cent of GDP,” a spokesman for the department said."