Investors have not raised concerns about proposals by new Taoiseach Leo Varadkar to set looser debt reduction targets or scrap a rainy day fund planned to offset future economic shocks.

This is according to the NTMA's head of funding, Frank O'Connor.

Leo Varadkar and newly appointed Finance Minister Paschal Donohoe have proposed the plans to free up spending for infrastructure projects in a country that remains one of the most indebted in the euro zone. 

"Investors are asking about Brexit, they are asking about Irish economic growth, but we're not getting questions on the debt reduction target," Frank O'Connor told Reuters at the sidelines of a Euromoney event in London. 

Mr O'Connor is the director of funding and debt management at the National Treasury Management Agency.

"There is a debate in Ireland about our infrastructure needs and how you address that in an environment where you've come through a period of elevated debt," he said.

"But it is very early days for the new government, and it is not in the forefront of investors' minds. You will have to wait and see some policy before it will become a bigger topic," he added.

Paschal Donohoe told Reuters last week that he would review the planned pace and start date of a contingency reserve or "rainy day fund" that is set to kick in from 2019. 

He also backed Leo Varadkar's plans to free up additional resources by setting a less ambitious debt reduction target than the one set last year, a policy that was questioned by the chief economist in Donohoe's department this week.