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NTMA statement following UK EU referendum

24 June 2016 – The National Treasury Management Agency (NTMA) has issued the following statement following yesterday’s referendum on the U.K.’s membership of the European Union:

The NTMA will monitor developments in the bond markets in the coming days and weeks. However, Ireland’s funding position is strong due to the activities of the NTMA in the first six months of 2016 and the fact that it has limited financing needs for the rest of the year and indeed through the first six months of 2017:

  • The NTMA has already funded the majority of its requirement for 2016, raising some €6 billion of its full-year target of €6-10 billion. The NTMA will announce its funding plans for Q3, as scheduled, on 1 July.
  • The State’s cash balances exceeded €10 billion at the end of May.
  • The next bond redemption does not occur until October of next year (2017).

Ireland’s fundamental debt dynamics are strong and improving. This has been reflected by investors and has enabled the NTMA to borrow at attractive interest rates. These improved fundamentals have also led to Ireland regaining its A-rating with all the major credit rating agencies last month notwithstanding the possibility of this outcome in the referendum.

The Government has reiterated its full commitment to Ireland’s membership of the EU.