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THE NATIONAL TREASURY Management Agency has completed its latest trip to the bond markets, raising a further €500 million from international investors.
The latest issuance, which is the fifth since the start of the year, brings the total raised this year to €7 billion.
The yield on the ten year government paper came in at 2.315%, continuing the recent trend of the NTMA locking in money to fund the state at record low prices.
Since the start of the year, when we returned to the bond markets for the first time after the bailout programme ended, the price we pay for loans has steadily dropped to its current level from the 3.54% achieved in January.
The January rate itself was significantly below the crisis levels which forced the country into a bailout agreement with the EU-IMF-ECB troika in 2010.
Cantor Fitzgerald analyst Ryan McGrath said that demand for the Irish debt issued today was in line with previous visits to the market at around 2.7 times the total on offer, which he described as “robust”.
The NTMA has now completed more than 87% of its €8 billion target for the year. In a statement, it said that it will announce plans for its bond issuance in the final quarter of the year at a later date.
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Keep borrowing at that rate, pay back the higher rate loans and save billions.
That’s the plan
There’s a plan …cool I thought Garth Brooks was just a distraction to this issue…..
And by “raised” you mean borrowed right?
of course, what do you think it meant, raffle tickets and church gate collection?
I’m sure you in your bubble world wisdom think that that is a bad thing. Please explain why we should be the only country in centuries to not borrow, especially when it is this cheap and so advantageous to us.
Did I say it was a bad thing or that we shouldn’t borrow? No I didnt.what im saying is call it for it is.NTMA borrows another 500 million from the bond markets. Thats what the headline should read. Instead of attempting to put a stupid postive spin on it by using a silly word like raises. They didn’t raise it they borrowed it. When u get a loan from the bank you dont say you raised the money do you? I know it might seem like a small thing and it is only a small thing but none the less it is a pathetic attempt by the press department at the NTMA not to “spook” the people by using a word like borrowing and the journalist should see through it and simply use the correct word.End of.not a big deal
The term “raises” is an industry one and it was old before NTMA even existed.
An industry term like “releasing the equity in your house?” That kind of an industry term? Another fancy industry term used to try and delude naive people into thinking they arent borrowing money.It maybe an industry term but its still spin.a term conjured up by some clever guy cause he realised that people may have a negative reaction when they hear the word borrow.again im not saying we shouldn’t borrow money cause obviously we have to and it is a record low interest rates but jesus cut the crap and call it for what it is.
Conor everything in life is spun, get used to it. Raising is a term for acquiring money, the method isn’t really the subject although in this case obviously it’s borrowed. What’s a mortgage if it’s not a loan? What’s hire purchase?
Still your point is a little childish because everyone knows it’s being borrowed and if they don’t then they probably have no interest either way and quite honestly they they shouldn’t be allowed to get a loan or ‘raise’ the money to get a ‘mortgage’.
You’d swear up until the recession we never borrowed money. All governments must borrow to function unless they can produce money from nothing or they have a resource that can be converted into money which guess what, we have feck all of.
Will you tell me why a government with power to create money should give that power away to a private monopoly and then borrow that which government can create itself back at interest to the point of national bankruptcy?
If the Government issued its own money for the needs of society, it would be automatically able to pay for all that can be produced in the country, and would no longer be obliged to borrow from foreign or domestic financial institutions.
So, when the Government would discuss a new project, it would not ask: “Do we have the money?”, but: “Do we have the materials and the workers to realize it?”. If it is so, new money would be automatically issued to finance this new production. Then the Irish could really live in accordance with their real means, the physical means, the possibilities of production. In other words, all that is physically possible would be made financially possible. There would be no more financial problems. The only limit would be that of the producing capacity of the nation. The Government would be able to finance all the developments and social programs demanded by the population that are physically feasible.
Haha yes I agree with you its a little childish and I am totally being pedantic about it but I guess what im saying is that it was a very causal attitude towards borrowing that landed us in such a mess in the first place and terms like “raises” and “equity release” are soft words for borrowing to try and lure people in.look borrowing is neither good or bad its like anything in life it depends on the circumstances. But you say the people that dont understand the terms shouldn’t be allowed to borrow but unfortunately they were and that as they say is why we are where we are.
Jamie we don’t have power or ability to create money. If we did we would have devalued the currency yrs ago.
I know what your saying but people have to take responsibility when they take out a loan and look beyond the sales pitch.
Yup I agree but they didn’t and they won’t and its not just them that pay for it.its everyone
If the interest on the bank bailout is not included..would we still have to borrow..or would we break even?or even have a small surplus?anyone know?
You spend more than what you take in so you would still have to borrow.
We are now in primary surplus, basically that means when interest for debt is excluded we are taking in more than we spend.
By year end we’ll be within the 3% rule.
I think the intererst payments on the bank debt amount to something like 1.6 billion per year at the moment. We still need to borrow money to meet current spending.
If the government kept to their initial plan of a 2billion adjustment, the primary deficit would be gone.
This is now pushed to next year.
No business cat ; we are after getting a load extra money in taxes since we went all independent Sinn fein and we have loads of immigration , sorry new jobs and we have turned the corner , see the green shoots and everything,
the only stumbling block is that Michael Noonan made a prize Git out of himself at the last Fine Gael shindig by announcing that Fine Gael was not going to do a Fianna fail on it and buy votes over the next two years and that targets were going to be met.
the bonanza looks a little fake now seeing as the current governments only hope is to buy votes …which of course they would never do !
have your say