The ratio of private borrowing to GNP is rising to a dangerous level, the former deputy head of banking supervision of the Central Bank of Ireland has warned.
Writing in this month's Finance (pg 4), Willie Slattery points out that by late 1999 aggregate credit has risen to 120 per cent of national income, and a continuation of recent growth in credit would see the ratio rise to 140 per cent this year, and 200 per cent by 2002. Such levels would be unsustainable, he writes.
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