Ireland will not borrow from bond markets until next year as an unexpected budget surplus has eliminated the need for the National Treasury Management Agency (NTMA) to issue more bonds.
The NTMA confirmed on Wednesday that it will not hold any bond or Treasury bill auctions for the remainder of 2022 due to its large cash reserves and the government’s strong fiscal position through 2023.
The move ends this year’s funding program after issuing $7 billion in long-term debt through September.
“This decision reflects our strong funding position as we prepare to enter the US with $20 billion in cash.
“The position of the Treasury was further strengthened by yesterday’s announcement of the 2023 budget, which shows a surplus for this year against the projected deficit of 7.7 billion euros in the 2022 budget.”
The NTMA said it will resume long-term borrowing in early 2023 after announcing its 2023 bond financing range in December.
Mr O’Connor said the agency retained “significant flexibility” in meeting future loan requirements.
Ireland was last in bond markets on the first of the month as the NTMA sold 1.25 billion euros in new funds ahead of the European Central Bank’s latest rate hike.
This auction followed canceled sales in June and August due to Ireland’s strong fiscal position as post-pandemic tax revenues flowed into the Treasury.
Strong tax revenue performance and lower-than-expected spending for Covid-19 and other contingencies have pushed government borrowing needs of $7.7 billion.
This prompted the NTMA to spend some of its €6.3 billion cash balance in August rather than relying on further market funding.
https://www.independent.ie/business/irish/ntma-steps-back-from-bond-markets-as-budget-surplus-promised-42023990.html NTMA pulls out of bond markets on promises of budget surplus