State raises €1.5bn but borrowing costs rise

THE Government raised €1.5 billion in a bond auction yesterday which was the top amount it planned to raise.

As the markets were undermined by the Greek crisis and the cost of borrowing to weaker eurozone economies rose sharply, the National Treasury Management Agency (NTMA), which is responsible for raising money for the state, had said it might skip yesterday’s opportunity to issue new bonds if the cost of borrowing remained too expensive.

NTMA boss John Corrigan, said the economy had enough cash reserves to fund its needs going forward and could stay out of the market if needs be for some time.