Tommy Broughan (Dublin Bay North, Independent)
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20. To ask the Minister for Finance the contingency planning that is taking place in the National Treasury Management Agency for Brexit; the future selling of bonds that is expected following a recent auction of €750 million in bonds maturing in 2030; and if he will make a statement on the matter. [33975/16]

Michael Noonan (Limerick City, Fine Gael)
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My Department has continued to engage closely with the National Treasury Management Agency (NTMA) both in advance of and following the UK referendum on EU membership. My Department is involved in ongoing monitoring of developments as they arise and is part of the cross governmental approach on the consequences of the UK's vote to leave the EU led by the Department of an Taoiseach.

The NTMA and my Department are monitoring, on an ongoing basis, developments in the bond markets in the context of the UK referendum. In the period since the referendum, the NTMA has completed three separate bond auctions most recently just last week, on 3rd November.  With the completion of last week's final bond auction of 2016, the NTMA has issued €8.25 billion nominal from its stated target range of €610 billion in the bond markets this year, at a weighted average yield of 0.82 per cent.

These debt issuances have occurred at a time when Irish Sovereign borrowing yields have remained at close to record lows of approximately 0.5% for 10 year Government bonds. These low yields are as a result of domestic factors, principally Ireland's improving debt dynamics and our continued commitment to prudent fiscal management, as well as international factors including the ECB's monetary policy measures.  Importantly, the NTMA's debt issuances earlier in the year have allowed it to lock in longer maturities at low interest rates, which is positive for debt servicing costs and will be important when interest rates return to normal.

Ireland's fundamental debt dynamics are improving and debt servicing costs are declining. These improved fundamentals mean that Ireland has now regained its A-rating with all the major credit rating agencies, following Moody's upgrade earlier this year.

The Exchequer's funding position is strong due to the activities of the NTMA in 2016 and the fact that it has limited financing needs in the months ahead. Exchequer cash and other liquid short-term investment balances stood at €9 billion at end-October 2016.

My Department forecasts a 2017 Exchequer Borrowing Requirement (EBR) of €2.2 billon. The current outstanding balance on the 2017 maturing Government bond is €6.3 billion. That bond does not mature until October of next year.  The NTMA have advised me that they will announce their funding plan, including a planned bond issuance range for 2017, next month.