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THE NATIONAL TREASURY Management Agency (NTMA) has raised €3.75 billion through the sale of a Treasury Bond.
Some €8.4 billion of bids were received, with interest coming from over 250 accounts including fund managers, pension funds, insurance companies and banks.
The bond, which will mature in May 2030, carries an annual interest rate of 2.487%.
NTMA Chief Executive John Corrigan welcomed the news:
The strong demand from investors globally for this longer-dated bond, our first 15-year maturity since 2009, demonstrates that Ireland has consolidated and enhanced its market access since making a successful return to the international debt markets earlier this year.
The money will go towards repaying loans given to Ireland by the International Monetary Fund.
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In one pocket and out the other
yeah seems kinda silly. but i suppose it’s at a much lower interest rate.
are there rules in place as to how much can be borrowed? Surely if there was €8.4 billion of interest in this bond, then they should sell €8.4 billions worth and use it to pay the higher interest Troika loan. Right?
Probably wrong though….that’s why I’m not an economist i suppose!
Not really.
We are borrowing money at an exceptionally low rate, for a long time.
Economy growing at 4%, inflation at 0.5%.
This is debt as manageable as it gets.
We should be rolling over all the debt we can at this stage and replacing it in the next few years.
It is a once in a life time opportunity to reduce our debt pile. .
“In short, there has been no Irish miracle turnaround that would remotely warrant the massive bond rally that has occurred since the crisis—to say nothing of a negative yield on two-year notes. Instead, the crackpot financial engineers in Brussels have turned Ireland into a debt serf that, at best, may manage to tread water until the next global downturn puts the damper on its export recovery.
But here’s the thing. Virtually none of the punters who have heeded Mario Draghi’s word clouds actually own Ireland’s debt. They all rent it by the day.
That means that Irish two-year notes yielding negative 0.1% will be crushed on the sound of a single word. Nein!”
http://wolfstreet.com/2014/10/01/bailed-out-irish-government-gets-paid-to-borrow/
No need for the USC anymore then……
You never replace tax with borrowed money.
You only use debt to build for the future, not reduce the tax burden.
Re-balance USC, certainly but it will have to stay.
its been reported that bond holders were willing to continue to lend based on the fact that the Irish population will embrace just about any level of taxation for reducing services combined with the pacificity of their government and their pathological desire to be liked by the EU and the sociopath financiers in the US
Correct. Debt is a form of slavery. The more you are willing to be enslaved, the more you can borrow.
No, it is because we have good growth, the ECB says it will backstop all debt and people have to invest it somewhere.
People are loosing money by putting it in bonds in Europe, the interest rates are so low.
Where was that reported dee4?
Wouldnt it be a great chance for nama or the ntma to actually help the variable mortage holders..issue bonds..let people switch to a magical 2.5%..or is help only for the important people….
More money for the bond holders shame on u fg and labour
What an ignorant statement.
That has to be the most wildly ignorant comment of the day.
I’m sure you imagine it has something to do with James Bond.
It would be a mistake to believe that the NTMA require any particular skill to raise debt in the midst of the latest credit bubble.
Only in the midst of such a bubble could acquiring debt be termed “making money”.
“In Spain, where there was a debt crisis just two years ago, investors are so eager to buy the government’s bonds that they recently accepted the lowest interest rates since 1789.
In New York, the Art Deco office tower at One Wall Street sold in May for $585 million, only three months after the going wisdom in the real estate industry was that it would sell for more like $466 million, the estimate in one industry tip sheet.
In France, a cable-television company called Numericable was recently able to borrow $11 billion, the largest junk bond deal on record ”
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