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NTMA to borrow up to €20bn on bond markets in 2021

The National Treasury Management Agency (NTMA) plans to raise between €16 billion and €20 billion in the bond markets next year to cover a budget gap caused the Covid-19 crisis and potential fallout from Brexit.

The agency, which manages Government funding, tapped the markets for €24 billion this year at an average interest rate of 0.02 per cent.

The Department of Finance predicts the State’s budget shortfall will be around €18 billion next year.

“Our strategy of pre-funding liabilities has allowed us to respond to the challenges of the Covid pandemic from a position of strength,” said Frank O’Connor, director of funding and debt management at the NTMA.

“This strategy gave us flexibility during 2020 to match our increased borrowing requirements with investor demand.”

With the Republic currently scheduled to repay relatively lower levels of borrowings than most other European countries over the next four years, the NTMA has “additional flexibility in meeting future borrowing requirements,” he said.

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