NTMA says Ireland is 'well-positioned' to borrow funds for Covid-19 recovery

Any borrowing will take place against a backdrop of a strong improvement in Ireland’s debt position.

Ireland will not have any issue borrowing from international markets to fund our recovery from Covid-19, the State's debt management agency has said.

The National Treasury Management Agency (NTMA) said any additional borrowing will take place against a backdrop of a strong improvement in Ireland’s debt position in recent years with strong demand for Irish debt among international investors.

“The strong progress Ireland has made improving its debt profile over the past five years leaves us well placed to address any borrowing challenges posed by the economic fallout of Covid-19," Conor O’Kelly, NTMA Chief Executive said.

He said the NTMA's strategy in recent years of prefunding liabilities means the State has already built up strong cash balances. "In line with this strategy, at the end of February we had €26 billion to fund this year’s €19 billion of redemptions."

Between 2017 and 2020 the NTMA has had to fund €70 billion for bond redemptions. However, there are no bond redemptions in 2021 and much lower redemptions totalling €27 billion from 2021 to 2024.

"We are well-positioned to meet the borrowing requirements and challenges presented by this economic crisis," Mr O'Kelly said.