Signs of life for Ireland in "The Markets"

I'm not happy and I don't know anyone that is happy (I don't personally know any unsecured bond holders!) about the repayment of the IBRC (former Anglo) senior bond of €1.2 billion. Securing the debts of this bank without due diligence was a big mistake (not ours!) but those are the cards we were dealt and at this point I do believe we have to honour our commitments. That approach will pay off and here's one immediate and practical example of why that is so.


Today the NTMA successfully exchanged €3.5 billion of a 2014 bond for a 2015 bond [30% of the 2014 bond issuance]. It was expected that approximately €2 billion of the bond would be exchanged but the demand was significantly higher. This transaction is a real positive for Ireland and illustrates that there is a demand for Irish debt.

It is the NTMA’s first significant engagement with the market since September 2010. Like all sovereign bond issuances, these extended funds will be used for the provision of key public services, such as social welfare, health and education services.

This illustrates how Government has to take a realistic view of the world if we want to be able to access money from the international markets to fund our vital public services