Ireland's Cash Reserves Reduce Refinancing Risks, Treasury Says
By Emese Bartha
Ireland's National Treasury Management Agency sees reduced
requirement for borrowing at higher rates in the coming years,
thanks to its prefunding with more than 30 billion euros ($30.55
billion) in cash at mid-2022, it said in its mid-year business
update on Thursday.
With almost 60% of this year's funding completed before the
recent move in rates, NTMA expects that the average rate on
Ireland's debt will remain close to the recent low of 1.5% this
year, and that the interest bill for 2022 will remain at a similar
level to 2021, it said.
The long average life of the medium- and long-term debt
portfolio, 10.7 years, also means that Ireland's refinancing
requirements are relatively limited in the years ahead, reducing
refinancing risk in a period when markets now anticipate
significant interest rate increases by central banks, NTMA
On average only 4% to 7% of Ireland's debt stock falls due for
refinancing each year over the next decade, it said.
So far in 2022 the NTMA has issued EUR5.75 billion in benchmark
bonds at a weighted average yield of 0.76% and a weighted average
maturity of 13 years, representing almost 60% of the lower end of
the 2022 target range of EUR10 billion to EUR14 billion, it
Write to Emese Bartha at email@example.com
(END) Dow Jones Newswires
July 07, 2022 06:01 ET (10:01 GMT)
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