Background to the Agency

The Dáil (parliament) passed the National Treasury Management Agency Act (PDF format 22kb) in 1990 which provided for the establishment of the National Treasury Management Agency "to borrow moneys for the Exchequer and to manage the National Debt on behalf of and subject to the control and general superintendence of the Minister for Finance and to perform certain related functions and to provide for connected matters".

The 1990 Act enabled the Government to delegate the borrowing and debt management functions of the Minister for Finance to the NTMA, such functions to be performed subject to such directions or guidelines as he might give. Obligations or liabilities undertaken by the NTMA in the performance of its functions have the same force and effect as if undertaken by the Minister.

As provided for in the Act, the Government issued an Order establishing the NTMA on 3 December 1990.

Prior to the the establishment of the NTMA in 1990, the Irish National Debt was managed principally by the Department of Finance, with short term paper issuance under the responsibility of the Central Bank.

As a result of substantial growth in the size and complexity of the Debt during the 1980s and the difficulty of hiring and retaining experienced professional debt management staff within the Department of Finance at that time, the Government decided to review the debt management procedures and the organisational arrangements in place and to consider a number of alternative options.

Following discussions with outside consultants on various possible approaches to the management of the Debt, the decision was made by the Government to set up an independent debt management agency, separate from both the Civil Service and the Central Bank, under the control and direction of the Minister for Finance.