Ireland has access to international capital markets and can borrow at negative interest rates if it needs to step up spending dramatically to fight the impact of coronavirus. Estimates by business group Ibec last week said the State may need to spend as much as 10pc of gross domestic product (GDP) - a figure that would equate to €34bn. Two weeks ago the National Treasury Management Agency (NTMA) borrowed €1bn at a yield of negative 0.156pc and it has now raised €5bn of the €10bn-€14bn it had aimed to finance this year. If the debt figure rises by €34bn this year instead of falling slightly, it would still come to less than 70pc of GDP based on data from the end of 2019. With the European Central Bank standing behind the bond market, even Italy won't face a financing crisis, economists say, much less Ireland.

Source: Irish Independent March 24, 2020 02:26 UTC