Only 8.4 per cent of Malta government debt is held by non-residents, the second lowest amount in the EU after Luxembourg (2.2 per cent).

This is a stark contrast to the rest of the EU, where most member states’ debt is held by non-residents. Eurostat reported this week that the highest rate is in Finland (81 per cent) and Latvia (80 per cent), followed by Austria (76 per cent).

Malta is also an outlier when it comes to the debt held by the resident financial sector. Whereas generally across the EU, less than 10 per cent of debt is held by the resident non-financial sector, in Malta, 36 per cent is held by the public, the highest rate in the EU. Belgium was in second place with 13 per cent. The largest proportion of debt held by the resident financial sector was recorded in Luxembourg (98 per cent), well ahead of second-placed Romania (74 per cent) and third-placed Czech Republic (63 per cent). In Malta, banks hold 55.4 per cent.

In 2014, debt securities were the main financial instrument in all EU member states, except Estonia, Greece and Cyprus. The highest proportions of debt financed by debt securities was recorded in Malta (92 per cent), with the Czech Republic and the United Kingdom in joint second place with 89 per cent.