Mr. Conor O'Kelly:

I think it is the latter. Ireland has strong growth, creditworthiness and resilience, and a strong position and economy across the board. Obviously we could get a significant shock from Brexit; we can see that certain sectors will be significantly affected. In the overall context, it probably will not be viewed as material from a bond market point of view when it comes to access to markets. However, they could easily change the price that they charge us, and that is where we need to have contingency built in.

Debt managers want to be in the position where they do not have to go to the market but can choose their timing and what part of the market and yield curve to go to. When there is big refinancing risk and they have to go to the market at a time that does not suit - perhaps it is very volatile or conditions are very poor - there will be a charge for borrowing in those circumstances. Debt managers want the freedom and flexibility not to have to go when the conditions are very poor. The cash buffer gives control over the timing and can allow them to wait it out and come up with a more efficient and economic strategy.