Ireland Allows Derivs Collateralization

The National Treasury Management Agency of Ireland has decided to post collateral to its derivatives counterparties.

The National Treasury Management Agency (NTMA) of Ireland has decided to post collateral to its derivatives counterparties, Risk.net reports. The Irish debt office had so far resisted the practice. The NTMA approved the measure to reduce the exchequer’s exposure to market counterparties and ensure that Ireland has efficient market access for hedging purposes. The agreement will require collateral to be posted in cash.

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