Dáil Éireann Debate, Thursday - 17 January 2013
45. Deputy Joan Collins asked the Minister for Finance if he will confirm that the recent bond sales by the National Treasury Management Agecny will, in fact, increase by a significant amount the annual debt interest payments required to be paid by the state on its borrowings; and if he will make a statement on the matter. [1990/13]
View answer48. Deputy Clare Daly asked the Minister for Finance his views on whether the recent bond sales by the National Treasury Management Agecny will, in fact, increase by a significant amount the annual debt interest payments required to be paid by the state on its borrowings; and if he will make a statement on the matter. [1988/13]
View answerI propose to take Questions Nos. 45 and 48 together.
Budget 2013 estimated that the cumulative Exchequer deficit over the years 2013-2015 would be close to €35 billion. In addition to these day-to-day costs, there are large debt redemptions that are scheduled from early 2013, including a €5.1 billion bond repayment in April 2013 and a €7.6 billion bond repayment in January 2014. The continuing budget deficits and debt redemptions must be adequately and prudently funded.
Budget 2013 provided for significant market issuance in 2013. The recent syndicated transaction raised €2.5 billion through the sale of the Treasury Bond which matures in October 2017 was part of this. A full year’s interest cost on this issuance would be some €137 million.
