Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 82: To ask the Minister for Finance his views on the increase in forecast expenditure on funding the national debt for 2009 by €544 million since the budget for 2009 was announced on 16 October 2008; the extent to which this is based on the potential impact on Ireland's sovereign credit rating or market sentiment resulting from either the granting of the bank guarantee or the nationalisation of Anglo Irish Bank; and if he will make a statement on the matter. [6356/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Addendum to the Stability Programme Update, which was published in early January, presented revised forecasts for the Exchequer Borrowing Requirement which it forecast at €18 billion. This represents an increase of €4,568 million over the Budget day forecast and in terms of financing costs for 2009 the estimate has increased by €544 million.

The National Treasury Management Agency have advised me that the main reasons for the increase in the forecast cost of servicing the national debt for 2009 are the increase in the estimate for the 2009 Exchequer Borrowing Requirement and the higher interest rates currently prevailing on Government bonds. The current elevated yields on Irish Government bonds reflects both global factors which are affecting all euro sovereign borrowers benchmarked to the German bond, and national specific factors. I understand that it is impossible to quantify the specific impact that each of these diverse individual factors have on the borrowing cost.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 83: To ask the Minister for Finance the schedule of borrowing and repayment activities of the National Treasury Management Agency regarding the management of the national debt over the course of 2008 and 2009; the amount of cash on hand held by NTMA or the Exchequer for the purpose of financing current and capital expenditures; when this cash will be exhausted, assuming no further borrowing or funding activities by the NTMA and static rates of expenditure; and if he will make a statement on the matter. [6317/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Exchequer Borrowing Requirement in 2008 was €12.7 billion. The NTMA issued two new bonds in 2008 which raised a total of €11 billion. In addition the NTMA issued net short-term debt of €18.4 billion to fund the difference and to build up end year cash balances to well over €20 billion as a prudent measure. The NTMA also successfully issued a 5-year €6 billion bond in January of this year. As a result, Exchequer free cash balances currently stand at over €26 billion. The Exchequer Borrowing Requirement for 2009 as set out in the Addendum to the Stability Programme Update published on the 9th January is €18 billion.

To facilitate the bank recapitalisation programme, the National Pensions Reserve Fund contribution for 2010 will be front-loaded into 2009 — this adds some €1.4 billion to the previously announced funding requirement. In addition a €5 billion government bond matures in April. On this basis, the National Treasury Management Agency (NTMA) have advised me that Ireland has a net financing need of some €241⁄2 billion in 2009. As is the norm the NTMA will decide on the timing of its longer term debt issuance programme for the remainder of the year in the light of market conditions.