BERLIN (Alliance News) - Germany's government debt decreased from last year in first half of 2013, preliminary data released by the Federal Statistical Office showed Thursday.

Overall debt declined 1.6 percent at the end of the six months ended June to EUR2,048.36 billion from the corresponding period of last year.

The marked fall in debt was mainly due to the continued portfolio reduction by the two so-called bad banks FMS Value Management and First EAA, the agency said.

Debts of the federal government and states dropped 1.4 percent and 2.5 percent respectively from a year earlier, while those of municipalities and associations moved up by 0.1 percent, data showed.

Copyright RTT News/dpa-AFX