Market response to debt auction acknowledges Ireland’s recovery efforts – Donohoe

5th July, 2012

Fine Gael Dublin Central Deputy, Paschal Donohoe, said today’s (Thursday) auction on the debt market of three month Government treasury bills is a clear signal that Ireland’s efforts in terms of regaining control of our public finances and meeting our Troika targets are being  acknowledged.

“Ireland’s return to the debt markets this morning, for the first time in almost two years, is great news. The sale of €500 million worth of three month treasury bills by the NTMA, and the interest and demand that was generated during the sale, is a clear signal from the markets that the efforts of the Irish people and the sacrifices being made to bring our finances back into line are being recognised.

“Demand for the bills was high, with bids coming in to cover three times the amount of bills issued, indicating a positive response from the markets to Ireland’s implementation of our Troika programme, and the recent ratification by the Irish people of the Stability Treaty Referendum.

“While we don’t want to overstate the significance of today’s auction, the progress we are making as a country has to be recognised. Back in January, the NTMA successfully exchanged €3.5 billion of a 2014 bond for a 2015 bond. And last week saw substantial changes being announced following on from the EU Summit meeting, which will see the link between sovereign and banking debt being broken. This will have considerable implications for Ireland. Today’s auction builds on that momentum, bringing Ireland a step closer to full market re-entry.

“The Government’s and the Irish people’s efforts in turning our economy around and restoring our reputation internationally are starting to pay off. Our long term bond yields are now half what they were and a steady stream of foreign direct investment is coming back into the country with the result that 1,000 jobs a month are being created.

“The Government is well aware that the numbers on the live register are still too high. That is why our focus has been on securing a growth agenda in Europe and on implementing the Action Plan for Jobs which will ensure that an environment in which jobs can be created is in place, enabling our people to get back to work.”