Malta’s financial guarantees to the European bailout fund were not responsible for pushing debt up to 75 per cent of GDP, according to the Labour Party.

The government had revised the public debt target upwards three times in eight months, said PL finance spokesman Karmenu Vella, and the guarantees were accounted for when the Finance Minister presented the Budget.

Figures released this week by the European statistical agency tallied Malta’s debt at 75 per cent. Finance Minister Tonio Fenech had said European Financial Stability Facility guarantees had been included for the first time.

But Mr Vella said: “This is absolutely not the case as EFSF guarantees were explicitly included and taken into consideration in the debt projections in both the Budget and the stability programme.”

He also disputed the government’s assertion that debt would fall to 72 per cent by December.

Mr Fenech said the debt figure was temporary as the government had advancedthe sale of stock earmarked for the latter half of 2012.