merrion street

The NTMA’s return to the bond market today is a very welcome and positive development. This auction marks the first time the NTMA has raised long term funds in the markets since September 2010.

Today’s commitment from investors of €5.23 billion represents very strong demand, the majority of which I understand to be from foreign investors. The strong demand and the fact that over €4 billion of this is new money is a significant step for Ireland in regaining our economic sovereignty.

Our strong programme implementation and decisive Yes vote in the recent referendum on the Stability Treaty is being recognised by investors. More importantly, the commitment from the European Heads of State and Government at the June summit to break the negative link between the sovereign and the banks is having a very positive impact on the market’s perception of Ireland.

While today’s auction is an important step, the true indicator of Ireland’s success will be our full emergence from the programme and the return to the international markets at sustainable rates. It is clear from today’s auction that investors are reacting favourably to the commitment by the Heads of State and Government to break the negative link, to examine the Irish programme and that similar cases will be treated equally. However, in order to make a full return at sustainable rates to the markets this commitment must be delivered upon.

Today’s market re-entry will reinforce our determination to deliver a deal on Ireland’s banking debt in line with the commitment and the timeframe of October that was set out by Commission Vice President Rehn following the Eurogroup meeting earlier this month. I have no doubt that once a final agreement is reached and announced, the markets will react favorably.