NTMA plans to raise €20bn in 2010
The National Treasury Management Agency plans to raise less in debt sales this year as the budget deficit shrinks and a smaller amount of bonds mature.
The agency will raise as much as €20bn in the bond market, it said in a statement today. That’s down from €35.4bn in 2009, of which €5bn was pre-funding to this year.
NTMA Chief Executive Officer John Corrigan said at a press conference that any syndicated bond sales this year will be used to “supplement” the regular bond auctions.
The Government is cutting spending to contain a budget deficit that has widened to 11.7pc of gross domestic product, almost four times the European Union limit. The country’s national debt amounted to 65pc of GDP at the end of 2009, up from 44pc a year earlier.
The Government sees the exchequer deficit, based on an Irish measure, narrowing to €18.7bn this year from €24.6bn in 2009.
About €1.2bn of bonds will need to be refinanced this year, the NTMA said today, down from €5bn in 2009.