The EU/IMF Programme covers Ireland's funding requirements from 2011 to 2013, provided of course that we continue to adhere to the terms and conditions of the Programme and meet targets. The most recent Exchequer deficit estimates for the years 2013-2015 were set out in Budget 2012 last December. Budget 2012 estimated that the Exchequer deficits in the years 2013-2015 would be €14.1 billion, €10.2 billion and €7 billion respectively.
The National Treasury Management Agency (NTMA) advises me that maturing long-term debt in the years 2013-2015 is currently estimated at €6 billion, €8.4 billion and €10.5 billion respectively. The table takes account of yesterday's successful bond switch which reduced the 2014 bond maturity by €3.5 billion.
Gross Funding Requirement 2014-15
|
€ billion
|
2014
|
2015
|
|
Exchequer Deficit
|
10.2
|
7.0
|
|
Maturing Long-term Debt
|
8.4
|
10.5
|
|
of which Irish Government Bonds
|
8.4
|
3.6
|
|
EU/IMF Programme
|
—
|
6.9
|
|
Total
|
18.6
|
17.5
|
As has been widely stated for some time now, it is the stated intention of the NTMA to return to borrowing in the sovereign debt markets as soon as market conditions permit. The decrease in Irish bond yields since the beginning of the year and the success of yesterday's bond switch by the NTMA indicate increased investor confidence that Ireland is dealing with its fiscal and economic issues. The NTMA is in ongoing contact with market participants and will advise me as and when it feels that the time is right to re-enter the markets.
