Written answers

Thursday, 23 June 2011

6:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 66: To ask the Minister for Finance if, in the event of the final deal with Greece resulting in burden sharing with private creditors, it will change his views on debt restructuring for Ireland; and if he will make a statement on the matter. [16943/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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There is no question of the Government restructuring its debt. We are determined to work with our European colleagues to find a common, shared approach to the issue of the sovereign debt crisis. We are committed to taking the steps necessary to restore our public finances to a sustainable position and implementing the policies that will assist this economy in returning to growth and generating employment. Based on conservative projections of our funding needs and taking account of funding possibilities, there is no urgency about a return to the markets. Indeed, the purpose of a programme such as the EU/IMF Programme of Financial Support for Ireland is to provide the space necessary for economic and fiscal adjustment to take place. Based on current projections and assuming full drawdown of the EU/IMF funds and no market access, the State has access to sufficient funds for its needs into the second half of 2013. The steps necessary to enable a return to the sovereign debt markets include resolution of the banking sector issues and continued progress in the reduction of the budget deficit in line with the targets agreed in the EU/IMF Programme of Financial Support, together with the implementation of policies that will see us return to sustainable economic growth. It is the stated intention of the National Treasury Management Agency (NTMA) to return to sovereign debt markets as soon as market conditions permit. The NTMA is in constant contact with market participants and will advise me when it feels that the time is right to re-enter the markets.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 67: To ask the Minister for Finance if he and or the National Treasury Management Agency are engaged in any contingency planning to deal with the possibility of Ireland not being able to return to the international bond markets in 2012 or early 2013; and if he will make a statement on the matter. [16944/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As I have previously outlined in relation to similar questions in the recent past, it is the stated intention of the National Treasury Management Agency (NTMA) to return to sovereign debt markets as soon as market conditions permit. The steps necessary to enable such a return include resolution of the banking sector issues and continued progress in the reduction of the budget deficit in line with the targets agreed in the EU/IMF Programme of Financial Support, together with the implementation of policies that will see us return to sustainable economic growth. A key development in that regard has been the publication of the results of the bank stress tests on 31 March 2011 and the associated recapitalisation exercise which have been well received by investors and rating agencies alike.

The NTMA is in constant contact with market participants and will advise me when it feels that the time is right to re-enter the markets. This is an issue that is under constant and close review by all concerned.

I should say that, based on conservative projections of our funding needs and taking account of funding possibilities, there is no urgency about a return to the markets. Indeed, the purpose of a programme such as the EU/IMF Programme for Ireland is to provide the space necessary for economic and fiscal adjustment to take place. Based on current projections and assuming no market access, the State has access to sufficient funds for its needs into the second half of 2013.

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