ANNUAL REPORT 2019
HIGHLIGHTS

Our Annual Report this year is published at a time of unprecedented challenge. COVID-19 has taken lives, placed an enormous burden on our health system and wider society, and triggered an economic shock with far-reaching consequences for jobs, livelihoods, employers and the State.

The people who are charged with managing this public health emergency deserve great credit. I want to express the NTMA’s appreciation for the work being done throughout the country by healthcare workers, the emergency services, community groups, volunteers and everyone who has played a part in addressing the challenge we share.

I also want to acknowledge the efforts being made throughout the NTMA – by the Board, the Management Team and by our colleagues at every level in the Agency – to ensure all aspects of the Agency’s critical work on behalf of the State and citizens continue uninterrupted in what I know are exceptionally difficult circumstances.

The NTMA has always recognised the importance of contingency planning; of investment in robust technology and operational platforms; and of investing in our people and their continuous learning. The value and importance of these priorities is clearer than ever today as the Agency, along with every individual and every organisation in the State deals with the challenges posed by the COVID-19 crisis.

The Agency has a strong track record in creating value for the State, during both good times and bad. The challenge which the organisation faces today is to continue to do so, in the most extraordinary environment the Agency has yet faced.

In recent months, Ireland has experienced a major economic shock but it is in a strong position to manage it and recover from it.

While our stock of debt remains high and is set to grow further, the risk this presents to our economy has diminished in recent years.

This is down to a range of supportive factors, which include an unprecedented low interest rate environment that is underpinned by an accommodative ECB monetary policy; economic policies that have resulted in a marked improvement in our national finances and material upgrades to our sovereign credit ratings; and a series of measures to enhance our debt sustainability.

The extent of the challenge is significant but our room to manoeuvre has been greatly enhanced by these factors.

Our average cost of debt is less than 2% – down from almost 4% as recently as five years ago. Our annual debt interest bill is heading close to €4bn in 2020 – down from more than €7.5bn five years ago. And we have the benefit of a smooth maturity profile in the years ahead and one of the longest average maturities in Europe.

And while our focus in this time of great uncertainty is to look ahead and plan for the future, the publication of our Annual Report is also a time to reflect on the progress that we have made.

One of the most important milestones from a funding and debt management perspective has been the virtual elimination of the refinancing “chimneys” – unusually large debt redemptions – which were an unwanted legacy of the 2008
financial crisis.