Michael Healy-Rae (Kerry South, Independent)
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Question 76: To ask the Minister for Finance in view of the fact that it looks like the re-structuring of the promissory notes held by the Irish Bank Resolution Corporation will not be enough to return Ireland to fiscal sustainability, his views that the likelihood of a second bailout being required after the current programme expires in 2013 is becoming more of a reality as each week goes by; and if he will make a statement on the matter. [10466/12]

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 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. 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.

As the Deputy is aware I have indicated that I am committed to reviewing the approach to the Promissory notes with a view to reducing the overall cost to the State of correcting the banking system. The Troika have agreed to engage in a process with Irish Officials to produce a common paper which will consider options for re-engineering the notes in terms of the maturity of the notes, the interest rate, the cash flows etc. Work is on-going on this review. Additional detail on such proposals will be available when the on-going work is further advanced. However, given the nature of advocacy and the decision making process in the EU I would not expect this matter to be concluded in the short term.

Market sentiment toward Ireland has also improved. 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. The bond switch helps smooth the maturity profile of Irish debt, lessens the refinancing requirement in the immediate aftermath of the conclusion of the EU/IMF Programme and is a reflection of the improved market sentiment for Irish Government paper. These developments can be directly related to our strong programme implementation.