Michael Creed (Cork North West, Fine Gael)
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Question 72: To ask the Minister for Finance in view of Ireland's compliance with the IMF/ECB bailout, his views on the present spread between Irish and German tenure bonds; and if he will make a statement on the matter. [18025/11]

Michael Noonan (Limerick City, Fine Gael)
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Ireland is meeting its targets under the EU/IMF Programme and the troika teams have concluded that we have made a strong start. Nevertheless, yields on Ireland's sovereign bonds are remaining at elevated levels and it is clear that this position is being exacerbated by the ongoing uncertainties due to the wider situation in Europe. Clearly, the current market view of Ireland as illustrated by our sovereign bond spreads is not what we would wish it to be.

However, based on conservative projections of our funding needs and taking account of funding possibilities, there is no urgency about a return to the markets and Ireland has not issued bonds at these elevated yields. 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 without going back to the markets in the meantime, the State has access to sufficient funds for its needs well into the second half of 2013.

We are barely half a year into our Programme, so it is still very early in this process. However, as I have already said, we are meeting our targets and, as long as we continue to do so, we expect that the Programme will achieve its objectives. The steps necessary to enable such a return to the 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.

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.