Brussels, 27/07/2012 (Agence Europe) - Good news for the eurozone - on Thursday 26 July 2012, Ireland issued five and eight-year bonds for an average of 5.9% and 6.1% respectively. This is the first time Ireland has rolled over debt of such maturity since September 2010 and comes after a recent short-term debt emission (see EUROPE 10650). The payment conditions for the new bonds had been set in advance. There was strong demand, exceeding supply by some billion euro, mostly from foreign investors. Irish Economy Minister Michael Noonen said that investors recognise that there has been strong implementation of Ireland's programme and a positive vote in the referendum deciding on the Budget Pact. He described the bond emission as a significant stage in the process of returning to budget sovereignty.
In a press release, Noonan said the eurozone summit's decision to separate off the banking crisis from countries' sovereign debt had played an important part in Ireland's newly restored positive reputation on the markets, but warned that the true success story for Ireland would be returning to the market at affordable interest rates and removal of monitoring by its lenders. Noonan said Ireland is determined to renegotiate its bailout of banks by October this year. (MB/transl.fl)