Cost of borrowing still ‘manageable’ despite likely deficit rise

THE National Treasury Management Agency (NTMA) – the body responsible for Ireland’s debt management – said the cost of borrowing is still “manageable”.

While the agency is “disappointed” at the higher cost of borrowing over Germany, John Corrigan, managing director of the NTMA, said the cost of borrowing today compares favourably with the rate in February or May of 2009.

Back then the state was paying interest of 6.1% on money borrowed compared with 5.4% to 5.5% today.