Irish Sovereign Green Bonds Update

NTMA's job is to finance the cash deficit (EBR) but it's best to use accruals-based GGB for comparison to peers EBR and GGB (€bns) usually minor - gap is Methodological Differences EBR GGB 10 10 -10 -20 -30 larger currently -60 2000 2002 -40 -50 banks hit GGB in 2010 but not EBR (non-cash expenditure) 2004 2006 2008 2010 Prom. Note capital transfer to recap 2012 2014 2016 2018 GG Balance EBR Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta National Treasury Management Agency Source: CSO, 2020f 2022f Department of Finance, NTMA analysis Accounting basis Cash (exchequer) Accrual Financial transactions Included Excluded Subset of Central Scope Govt. Includes all of Central & Local Intra-Government No Yes Consolidation 2020 2021 Comments EBR -12.3 -16.9 This is the deficit in cash terms that the NTMA must finance each year Adjust for Accruals 1.6 1.9 Accruals can relate to interest, taxes, other expenditures Transactions between the Exchequer and Exclude Equity & Loan Transactions -2.4 -0.3 NAMA, CBI and other govt. entities: this benefits funding req. Social Insurance Fund -3.5 -0.6 Semi State, ISIF, -1.5 -0.9 other funds Archaic funding structure of social insurance in Ireland is outside Exchequer. Consolidated in GGB Dividends and profits from government entities Local Govt. -0.4 -1.3 Local governments fund themselves Most complete metric for fiscal position. GGB -18.4 -18.1 Use this for deficit comparison with other nations 30

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