State raises €6bn of debt as costs of fight against Covid-19 start to be counted
The National Treasury Management Agency has raised €6bn in debt to be repaid in seven years at a yield or interest rate of 0.24% -- marking the start of an extensive programme to cover the costs to the State in fighting the pandemic.
NTMA chief executive Conor O’’Kelly hailed the "the strong demand" in the €6bn sale as showing the State was in good shape, helped by ECB measures, to "meet any additional borrowing requirements" of the Covid-19 crisis.
The debt agency has long acknowledged it will have to borrow more than anticipated this year but because it also carries significant amounts of cash, economists say the amount it will tap from debt markets remains unclear.
Some analysts say the exchequer costs will reach €30bn this year as the State faces significant additional costs and loss of tax revenues.
The Central Bank last week said the hit to the exchequer would be €21.8bn, just for 12-weeks of the Covid-19 restrictions.
