Dáil Éireann Debate, Wednesday - 5 October 2011
38 Deputy Martin Ferris asked the Minister for Finance if he is preparing any contingency plans to deal with the possibility of the State being unable to re-enter the financial markets at the end of 2013 and if so, if he will outline these plans. [27680/11]
View answer44 Deputy Martin Ferris asked the Minister for Finance his views on whether the State can re-enter the financial markets in part during 2012 and in full by mid 2013. [27679/11]
View answerI propose to take Questions Nos. 38 and 44 together.
Under the EU/IMF Programme of Financial Support, Ireland has access to sufficient funding for its requirements until late 2013.
The National Treasury Management Agency (NTMA) has maintained a low-level presence in the markets in recent months, borrowing for very short durations. The Agency would hope to be in a position to expand its borrowing in the latter part of 2012 by slowly extending the maturity of the debt raised before beginning efforts to raise long-term debt. Ultimately, the timing of these decisions will depend on many different circumstances, both national and international, and on Ireland's continued success in implementing the EU/IMF Programme of Financial Support. The recent improvement in the performance of Irish Government bonds on the secondary markets is encouraging in this respect.
The conclusion of the third review under the EU/IMF Programme was that Ireland is meeting all of the conditions and targets of our Programme, that the Programme is on track and that Ireland is making progress. We have met the fiscal, banking and structural reform targets on time. Indeed, implementation of some of the financial sector reforms occurred ahead of schedule. The third quarterly review was completed successfully on 2 September when the IMF Executive Board and the ECOFIN Council approved the completion of the third quarterly review. This enables the next disbursement of the agreed funding by the IMF and the EU's funding mechanisms.
The strong start we have made to delivering on Programme commitments has been maintained and it remains the Government's key priority. This performance and the Government's continuing commitment to keep the Programme on track is the best way to ensure that we emerge successfully from this Programme. That will mean that we can return safely to the financial markets for funding in as timely a manner as possible.
Deputies will also be aware that the statement by Heads of State or Government of the euro area and EU Institutions on 21 July last affirmed their determination to continue to provide support to Programme countries until they have regained market access, provided they successfully implement those Programmes.
