Ireland to re-enter debt markets soon
Dublin, January 8, 2011
Ireland will resume borrowing as soon as investors feel more comfortable about its fiscal goals and prospects for other peripheral euro zone countries, the Irish debt management agency said.
Under an 85 billion euro ($110 billion) EU/IMF bailout package agreed late last year, Ireland has 50 billion euros to cover its sovereign funding costs for the next three years with the rest earmarked for its ailing banking sector.
Despite the external assistance, Irish bond yields remain sky-high amid concerns future bank losses and a bloated budget deficit will prove too much and it could default.
But the National Treasury Management Agency (NTMA) said Ireland's fiscal targets were achievable and the terms of the bailout programme - which include loans of varying maturities up to 12 years and with an average maturity of seven and half years - would help stagger repayments.-Reuters