Written answers

Thursday, 21 March 2013

Department of Finance

Outright Monetary Transaction Scheme Eligibility

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he has confirmed with the European Central Bank, that in view of the recent issuance of €5bn of 10-year bonds to a wide range of investors, that Ireland now qualifies for access to the ECB’s outright monetary transaction scheme. [14574/13]

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance his assessment on whether this State now meets the criteria for access to the ECB’s outright monetary transaction scheme, following the recent issuance of €5bn of 10-year bonds to a wide range of investors. [14575/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 94 and 95 together.

In my reply to the Deputy’s Question No. 211 of 12 February last, I set out the principal criteria for the ECB’s Outright Monetary Transactions (OMTs) as set out in its press statement of 6 September 2012. Those criteria have not changed. It is clear is that the ECB will decide on the application of OMTs in any particular circumstance to the extent that they are warranted from a monetary policy perspective as long as programme conditionality is fully respected, and terminate them once their objectives are achieved or when there is non-compliance with the macroeconomic adjustment or precautionary programme. It is also clear that the ECB's Governing Council will decide on the start, continuation and suspension of OMTs, following a thorough assessment, in full discretion and acting in accordance with its monetary policy mandate. I believe the ECB’s announcement regarding its OMT programme is a significant development and is viewed as such by the financial markets. We are in the final year of our EU-IMF programme. Our focus is firmly fixed on a successful and durable exit from the programme. The recent highly successful sale of long-term bonds by the NTMA is another very significant step in this process. We continue to assess a number of options in this regard. However, we must respect the fact that the decision on whether to grant OMTs or otherwise in any particular case is a matter for the ECB.

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