Tuesday 18 September 2018

State will go to markets on Thursday to borrow €1bn

Conor O'Kelly, chief executive NTMA
Conor O'Kelly, chief executive NTMA

The Government will borrow €1bn on the markets on Thursday by tapping, or adding to, an existing tranche of bonds that falls due in 2028 and carries a coupon or interest bill of 0.90pc per year. The yield on 10 year Irish bonds - a real-time gauge of interest costs for debt - was 0.871pc last night.

The new money being raised by the NTMA - headed by chief executive Conor O'Kelly - is mainly to replace existing debt.

The Government has raised €12.55bn so far this year, out of a targeted range of €14bn to €18bn. The total national debt is just over €200bn, having risen dramatically in the wake of the crash.

Central Bank Governor Philip Lane and Irish Fiscal Advisory Council chief Seamus Coffey have warned that the national budget should be balanced.

Irish Independent

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