The country’s debt management agency has said its total borrowings this year will be “at the upper end” of the €20-24 billion range it had already indicated.

The update from the National Treasury Management Agency (NTMA) followed the announcement by the Government yesterday (23 July) of stimulus measures totalling €7.4 billion.

Pandemic

The NTMA had raised its borrowing estimate by €10 billion in April due to the need for greater public spending to deal with the COVID-19 pandemic.

The agency has already raised €20 billion in long-term bond funding so far this year, and its next bond auction will be held in September.

Rates

It has been helped by low interest rates, with the bonds sold so far having an average yield of 0.27%.

"Our guidance takes account of our levels of pre-funding entering 2020, additional funding flows from private placements with ultra-long maturities, increased retail inflows into State Savings, and strong demand for our Treasury Bills and euro commercial paper, " said the NTMA’s director of funding and debt management Frank O’Connor (pictured).