Business Irish

Saturday 16 December 2017

NTMA aims to sell treasury bills this summer

Dara Doyle and Donal Donovan

THE National Treasury Management Agency (NTMA) plans to seek to sell treasury bills in the "summer months" before a full return to bond markets in late 2012 or early 2013.

In a presentation posted on its website, the NTMA said the return to a "more normal funding cycle" is subject to euro-area conditions.

"Current market turbulence is unhelpful," it noted. Irish banks have "more than enough capital" to come through the economic cycle, the NTMA added.

Earlier this week, traders called for Ireland to get back into the markets, using the positive momentum from last week's referendum result.

A gradual return to borrowing in the money markets is seen as the key to exiting the EU/IMF bailout and must be under way by at least the end of 2013 or the country is at risk of a second bailout.

In January, John Corrigan, head of the NTMA, said he planned to tap the markets by borrowing short-term bonds, known as bills, in June or July of this year.

On Wednesday, Ryan McGrath, a trader at Dolmen Securities, said he believed there was now no reason to delay a sale of Irish Government bills.

"We anticipate that the NTMA will re-engage with the markets and start to issue T bills in the very near future -- potentially by the end of this month," Mr McGrath said in a note to potential investors.

Irish Independent

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