Noonan targets 2013 market re-entry

Minister for Finance Michael Noonan said today he is targeting "full re-entry" to  bond markets by mid-2013, as Ireland seeks to wean itself off international aid.

The National Treasury Management Agency (NTMA) plans to step up issuance of short-term debt in the second half of 2012, and follow this up with "some longer-term issuance" later in the year, markets conditions allowing, Mr Noonan said in a speech in London today.

The Government is pressing on with its deficit-reduction plans as European leaders try to resolve the euro-area debt crisis that's put the top credit ratings of Germany and France at risk.

Mr Noonan said there is an "urgency" needed as officials draft the framework of new fiscal rules agreed to at a summit in Brussels last week.

"The focus these days, though, is not really on any single country but Europe as a whole and the entire world,'' Mr Noonan said. "Whatever each of us may think about the outcome and meaning of last week's Brussels summits, we all agree on the importance of the current crisis to us all, euro zone members or not.''

Irish bonds due in 2020 yielded 8.81 per cent today, up from 8.06 per cent a month earlier.

Spain's 10-year yielded 5.7 per cent, and Italy's was at 6.7 per cent. The yield on Germany's 10-year bund, Europe's benchmark, was at 2.03 per cent.

Standard and Poor's placed the ratings of 15 euro nations, including AAA rated France and Germany, on review for possible downgrade on December 5th pending an assessment of the European Union summit.

Moody's Investors Service said the deal offered few new measures and does not diminish the risk of credit downgrades, while Fitch Ratings said it did little to ease pressure on governments.

Dublin is seeking to return to international bond markets after debts at its banks overwhelmed the country and it sought a bailout in 2010.

Mr Noonan reiterated that Ireland would not impose losses on sovereign debt holders or on holders of the country's senior bank debt.

There is "no question whatsoever about our sovereign signature", he said.

"My key message to you is that we want to move out of the European Union-International Monetary Fund program and return to the markets at the earliest opportunity," Mr Noonan said.

"I intend that Ireland will give Europe its first success story as the recessionary cycle moves back in the right direction."

The  Minister said that while European leaders took "significant steps" at last week's summit to alleviate investor concerns, they "urgently" need to put in place measures to restore confidence in the euro.

Mr Noonan, who is meetinng British chancellor George Osborne today, said it was a "pity" that Britain did not sign up to the deal at the summit. Mr Noonan said his budget for 2012, unveiled earlier this month, will ensure that the country meets the fiscal targets under its bailout.