THE Government plans to borrow between €14bn and €18bn next year, to repay outstanding debt as it falls due.
The plans outlined by the National Treasury Management Agency (NTMA) are in line with the amount raised this year on the bond markets. The Government is forecasting a balanced budget next year, meaning it will not borrow for spending.
That’s the first time since the crash in 2008 that the State will not spend more than it takes in through taxation. However, with a massive national debt to manage to NTMA will continue to issue new bonds as existing debt matures. The NTMA will have a cash balance of €13bn at the start of 2019, with €15bn of bonds falling due over the following 12 months.
The NTMA said it will issue a statement at the beginning of each quarter next year, outlining the bond auction plans for coming three months.
It said it intends to hold at least one syndicated bond deal during the year – a practice whereby debt is issued to lenders through intermediary banks, as well as regular bond auctions.
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