Saturday , April 17 2021

The leader of NTMA says that the agency has more concerns than Brexit

The executive director of the Treasury Management Agency said that the organization does not have a contingency plan for Brexit because it operates with a permanent contingency plan.

Conor O & Kelly said that Ireland is one of the most open economies in the world and one of the most heavily indebted countries in Europe and the world.

The State trusts in foreign capital 90% of our loans.

"Ireland does not need a contingency plan for Brexit, it needs a permanent contingency plan," said O & K, the Market Implication Event of the Strategic Investment Fund in Dublin at Dublin

To do this, he said the agency has blocked today's percentages through the prefix, maintains sufficient cash on the balance sheet to reduce the volatility of the market, conditions the debt to soften the later years and diversifies The basis of investors for geography, type and product.

"This also helps to mitigate these risks," he said.

O & # 39; Kelly said that while NTMA is worried about Brexit, there are things that worries him most.

"We are worried about Italy, because of the banking crisis, because of the financial crisis that we are watching," he said.

"Investors are very concerned about the Irish tax, and the corporate tax environment and if there are changes," said O & K.

He said that reality, however, is that the next shock, the next thing that will reach our financing market, is probably something we have not yet thought about and that is not on the front page of all the newspapers in the world.

He said that due to its openness and vulnerability, it must be prepared for Ireland and have contingency plans from a financing perspective for many years.

O & K; also spoke about the NTMA movement toward the environmental agenda, stating that it had published the country's first green crazy last year and was taken out of all investments of fossil fuels.

This included the identification of 148 global fossil fuel companies in which it will not invest in the future and divest of the shares of 38 shares that it currently has.

Kelly said that this movement makes ISIF one of the world's first sovereign wealth funds to implement a strategy for divestiture of fossil fuels.

Speaking more generally about the investments of ISIF, said last year that the fund invested 770 million euros, making 21 investments or one every two weeks.

He said that the ISIF had not escaped the world market record last year and that it had posted a 1.1% negative profitability, although the Irish portfolio had positive returns.

ISIF also today presented its new investment strategy, guided by the National Development Plan.

You must prioritize five sectors, including regional development, with 500-750 million euros of commercial investment in regional businesses and projects oriented over the next five years.

The ISIF said it also intends to address the gaps in the capital markets to provide financing that will deliver up to 25,000 homes by 2025.

According to its new priorities, ISIF said it plans to contribute to the development of the next wave of large-scale indigenous companies that will compete internationally, while also based on existing investments in renewable energies and the reduction of energy, # Carbon emissions to support the transition of Ireland towards a low carbon economy.

In Brexit, ISIF said it will seek commercial investments in companies that could be negatively affected by the United Kingdom leaving the European Union Brexit to allow the diversification of products and markets in the long term.

ISIF Director Eugene O Callaghan said that the new strategy focused on the fund takes into account the significant progress made in the Irish economy and the investment climate since the ISIF was opened for companies.

He said that the opportunities and challenges facing the Irish economy in 2019 are very different from those of 2014 when the fund was created.

"It will be important for ISIF to contribute to the wider development of the Irish economy and also to be the chosen investor for companies and ambitious projects that can use ISIF and investment capital to boost their sustainability and the # long-term success ". added.

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