Michael Ring (Mayo, Fine Gael)
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Question 330: To ask the Minister for Finance the major sources of borrowings that have financed our national debt; and if he will make a statement on the matter. [38457/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the National Treasury Management Agency (NTMA) that they have already raised more than €34 billion in long-term funding in 2009. Of the total funding, €32.8 billion refers to sales of Irish Government Bonds - €23 billion by way of syndicated bond issues and €9.8 billion through a series of bond auctions. Irish Government Bonds are bought by a broad range of investors, both domestic and international, but mainly financial institutions including fund managers, banks, Central Banks and insurance companies. The NTMA advise that international investors took up approximately 75 per cent of the bonds issued by syndication in 2009.

The balance of the long-term funding raised in 2009, currently €1.26 billion, was raised under the government savings schemes – these are domestic retail products operated on behalf of the NTMA by the Prize Bond Company and An Post.

In addition, the NTMA borrows in the short-term markets, mainly in order to manage liquidity risks and to assist in the timing of borrowings. These cash balances stood at around €25 billion at end-September. In 2009, the NTMA launched two new short-term programmes – Treasury Bills and a US Commercial Paper Programme – to diversify further the sources of borrowing available to it. The NTMA advise that both programmes have been highly successful and have seen strong demand from international banks and corporate treasuries.

While the nature of the international markets makes it difficult to quantify, the NTMA have advised that it is estimated that almost 80 per cent of Ireland's gross debt is currently held by international investors.