DUBLIN (Reuters) – The Irish debt agency’s large cash balance of 30 billion euros raised when interest rates were at unprecedented lows will cushion Ireland in the years ahead against rising borrowing costs, its new chief executive said on Thursday.
By raising more debt than necessary in recent years, the National Treasury Management Agency’s (NTMA) cash balances have risen to 13% of gross national income.
It has also lengthened the average maturity of its bond portfolio 10.7 years.
“This dual strategy of borrowing more – that pre-funding cash balance – and borrowing for longer is what allows us to lock in the benefits of low unprecedented rate environment further and will cushion Ireland in the years ahead against rising borrowing costs,” Frank O’Connor told a news conference.
(Reporting by Padraic Halpin; Editing by Toby Chopra)
