NTMA buys back €4.1 billion of January 2014 bond

NTMA buys back €4.1 billion of January 2014 bond - → rte.ie/news/business/2013/12 … d-buyback/

Early payment of €4.1bn debt puts dent in State cash pile - → independent.ie/business/iris … 47427.html

I heard it knocked c. 2% on the Debt to GDP ratio, dropping it to 122% or so.

Massages the end of 2013 figures

So if growth projections hold up is that the peak? 122% of GDP. Projection was for 127%?

That is the theory.

Q3 Quarterly National Accounts out tomorrow showing growth in 2013 to Sep 30

October IMF forecast was 123.3% for 2013. (fall to 121% in 2014)
Irish Dept of Finance forecast was 124% for year end 2013.
the buyback should take approx 2.5% off the GROSS debt / GDP figure.
sure its massaging the figures, but why hold all that cash and not get any ‘credit’ for it.
A new 10 or 15 year bond will be issued in the new year to get the cash pile back up.