Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 26: To ask the Minister for Finance his views on the analysis of the three prominent economists (details supplied) who recently gave evidence before the Finance Committee that Ireland is most likely going to need a second so called bail-out by the beginning of 2014; and if not, the reason therefore; and if he will make a statement on the matter. [9939/12]

Michael Noonan (Limerick City, Fine Gael)
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I would not agree with the conclusion outlined above. Ireland's Programme of external support, which is a three year programme designed to return us to market based financing is on track. We are meeting our targets under the Programme and continuing to do so is the best means of ensuring that that we emerge successfully from this programme. A substantial number of actions - over 90 – have already been completed. The Budgetary outturn for 2011 was well within the target set by the Troika. The 5th and most recent EU/IMF review mission of Ireland was completed successfully and I look forward to the successful completion of the overall review process.

In addition the cost of the banking measures under the Programme has been significantly lower than initially envisaged. The imposition of burden sharing on unsecured subordinated bondholders has been an important element in this cost reduction.

The reduction in our programme funding costs further supports these actions. These reductions, arising from changes to the costs of both the EU and IMF funding, amount to some €10 billion over the initially envisaged 7.5 year average term of the programme.

The purpose of 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 well into the second half of 2013.

Our strong programme performance is reflected in the continuing reduction in our bond yields. This is essential to achieve the NTMA's stated intention of returning to sovereign debt markets as soon as market conditions permit.

Market sentiment toward Ireland has also improved. Ireland has maintained its credit rating at a time when a number of euro area countries were downgraded in 2012. Irish bond yields have improved considerably. In recent days, the 10-year bond yield has gone below 7% which is a considerable reduction from the 14.1% peak in July 2011. The National Treasury Management Agency has re-engaged with the bond market and extended some €3.5 billion of debt maturing just after the programme ends. This is a significant first step in terms of managing Ireland's post programme funding requirements. These developments can be directly related to our strong programme implementation.