Dáil Éireann Debate, Wednesday - 16 February 2022
82. Deputy Peadar Tóibín asked the Minister for Finance the total cost of national debt servicing currently; the refinancing schedule for the next five years; the interest rate projections for the next five years; and the estimated amount interest rate increases will cost the Exchequer. [8542/22]
Amharc ar fhreagraExchequer debt servicing costs for 2022 were projected at just below €3.9bn at the time of Budget 2022 last October.
This is a slight increase on 2021. The provisional debt service outturn for 2021 was just below €3.75bn.
I am informed by the National Treasury Management Agency (NTMA) that the maturity profile of the Exchequer’s medium/long-term (MLT) debt portfolio is available on the Agency's website. A summary version, reflecting the position as of end-January 2022, and covering the five-year period 2022 – 2026 is outlined below.
|
€bn |
Government Bonds |
EFSM |
SURE |
Other MLT Debt |
|
2022 |
12.0 |
- |
- |
0.0 |
|
2023 |
7.0 |
2.0 |
- |
0.0 |
|
2024 |
8.1 |
0.8 |
- |
0.2 |
|
2025 |
11.5 |
2.4 |
- |
0.1 |
|
2026 |
11.7 |
2.0 |
1.3 |
0.0 |
Sovereign bond yields have increased in recent weeks. This primarily reflects inflation developments and market expectations of sooner than previously expected interest rate increases. This is true of both the Federal Reserve in the U.S. and the European Central Bank. The Bank of England has already begun to increase interest rates.
An updated set of debt service projections will be prepared for the forthcoming Stability Programme Update which will be published in April. These projections will reflect the change in the interest rate outlook since the Budget 2022 estimates were prepared last year.
