10yr bond auction represents milestone in Ireland’s recovery and signals the plan is working – Donohoe

13th March, 2013

Speaking following the first auction of ten year government bonds this morning (Wednesday) since Ireland entered the Troika programme in 2010, Fine Gael Dublin Central Deputy, Paschal Donohoe, said the level of interest shown in the auction indicates the positive light in which Ireland is viewed internationally and is further proof that the Government’s plan to turn our economy around is working.

“The success seen today in the NTMA’s issuing of a new ten year bond is testament to the progress being made by the Government in restoring Ireland’s reputation internationally and signals another milestone on Ireland’s road to recovery.

“This is the first ten year bond issued since Fianna Fáil brought the IMF to our door through their reckless and complete mismanagement of our economy. Our ability to once again raise long-term funds on the financial markets brings us another step closer to regaining full economic independence and successfully exiting our bailout programme.

“The Government has steadily been unpicking the tangled mess it inherited from Fianna Fáil. Our Ministers have been working assiduously to get a better deal for the Irish people in Europe, to encourage investment by letting the world know that we are open for business and to ultimately get our people back to work.

“In recent weeks we have seen a number of significant events taking place that will put Ireland back on a secure financial footing; we have closed down Anglo and Irish Nationwide Building Society, the promissory notes have been dealt by way of a long-term government bond and the bank guarantee being brought to an end. Where jobs and investment are concerned, confidence is returning with Foreign Direct Investment at a ten year high and the first annual increase in employment being recorded last year since 2008.

“We have been making headway in getting our budgetary deficit under control and closing the gap between what we take in and what we spend. We have been meeting all of our targets on a quarterly basis and this has been reflected in the reduction in our bond yields which have fallen from a high of 14% to around 4%.

“What we need, ultimately, is for the return of domestic growth. We have had two consecutive years of modest growth under this Government with that trend set to increase this year. The fact that this bond auction was so oversubscribed, and allowed the NTMA to raise such a significant amount of money, will signal to investors that Ireland is indeed a good place to invest and that we are open and set for business.”