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THE HEAD OF the National Treasury Management Agency John Corrigan said he has seen a greater diversity of people looking to invest in Ireland, with a lot of interest being shown by European insurance companies.
However, he said that Moody’s credit rating agency’s sub-level rating of Ireland is side-lining Asian investors.
Speaking on RTE’s This Week radio programme, he said the market is looking for the debt to be stabilised and keeping an eye on the credit rating agencies is a part of that.
Moody’s
He said if Moody’s were to move on their rating it would be “very significant”. He said that a shift down in yields would mean Ireland would get a better price for our debt.
If grading went up it would mean there are more buyers and investors, meaning a higher demand for Irish bonds and a lower price for our debt, he said.
Corrigan said Moody’s concerns have been largely about “systemic issues in Europe,” adding, “they state that it is nothing personal to Ireland”. He said there is evidence that they are softening their Euro-skepticism.
Bailout exit
When asked what role the NTMA had in this week’s bailout process exit, he said they provided feedback to the Minister for Finance about what to expect from the markets.
“We in the NTMA are very cautious people as we have to manage big risk,” he said, adding that the NTMA would have engaged with market after it became public about the possibility of an emergency credit line being issued.
“We felt it was safe to air issue with the market and the markets take on it was quite relaxed,” said Corrigan.
He added that Ireland’s decision not to apply for credit line following the bailout exist doesn’t rule out OMT benefits.
Speaking about the markets he said:
We are fully funded to the middle of the first quarter of 2015, but we would be engaging with the market in 2014 by way of pre-funding for the following year.
The timing is very important in terms of the annual servicing of the debt, he said.
Corrigan said there is a need to return to a regular programme of issuance, adding they are looking at a programme options for next year, and “we hope to make announcement on the capital markets in early January,” he said.
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So they’re looking at quantative easing, which was absolutely out of the question to give the gullible Irlanders a dig out for saving their currency and banks, but as soon as Germanys economy slows down it full staem ahead with the QE quicker than you can say ‘I have sauerkraut in my lederhosen’.
Do I have to mention the ‘seismic shift’? If it can’t be secured now, it was a lie all along.
Unemployment still way too high, property bubble on the horizon, thousands of mortgage arrears still not being dealt with, water charges on the way to compliment all the other extra taxes introduced over the last few years, banks still restricting credit and the national debt is as high as it ever was. “Sure we’ll be grand”.
And you forgot the interest rates that will have to go up at some point. That’s going to be the real killer for Ireland
2008 was nothing. It was caused by banking debt. Now we enter a period where sh!t is about to hit the fan with SOVEREIGN debt.
When banks crash, some people lose their jobs.
When countries crash, everybody loses their life savings along with their jobs.
Quantative easing devalues savings so it’s not in the interest of Germany, a country of savers. I’m sure Germany will continue to resist it – as they should as it makes us all poorer.
George what property bubble , that is government spin, europe is an asylum doctored by Germany because the EC bank is there.
She lifted her skirt and we were amazed to see that she was a “he”. ;-)
The same story is being spun here in Spain. The economy is on the up but with nearly 6 million unemployed it is not having any effect. In august alone the nearly 300,000 people have had their dole cut off, at least a million families have all members on the dole, so they can paint all the pictures the want but the next ten years will be bleak
“Ireland: The recovery is on track but almost six years after the economic bust, fantasy economics endure.” http://www.finfacts.ie/irishfinancenews/article_1028114.shtml
Bigmac it is all lies I watch a financial banker from Germany talk on Bloomberg this afternoon. Nothing changed Germany does not see the rest of Europe as being significant or allowed any point of view. Their business sector fears if this changes the german economy will collaspe. I guess we are told this lies in Ireland because of are impending auster budget in October and an election in February 2016.
Ireland had enough our politicians know this and our growth is slowing european growth is at 0.2% not healthy because Spain and Ireland will be dragged down once again with Europe.
sure that was the situation in 07.If Europe goes down so does Ireland. If interest rates go up, Ireland goes down. “We” are living the American dream, one pay cheque from being kicked out on the street
doesnt it feel like theres an election on the way with all this spin.
Come on you boys in Green, the rest of Europe will again look upon us with the respect we deserve for our astute economic genius! Everybody go home and treat yourself to a bottle of champagne.
FFS ,?Ted r u on white powder,?
He’s on a drug called “Understanding the concept of irony”.
“Ireland steams ahead” pfft
This all sounds very familiar
Unbelievably familiar..
Yay Thursday nites on the lash are back on the cards! !
So how long will Ireland steam ahead for if its European market is dead in the water?
In your face, Europe.
US multinationals are the key drivers of Ireland’s economy, so no worries, for the moment at least. It’s a case of steady as she goes!
Our 12.5 % Corporation Tax rate; being the only English speaking country in the Euro Zone; and the excellent work of Enterprise Ireland, is what’s keeping the Yankee Dollar Investments flowing Ireland’s way. Hopefully, no major changes emerge to US corporation tax rules that might change the dynamic for FDI from there to Ireland.
If Germany okays QE, it will be to suit its own interests, and nobody else’s. But this will also suit Ireland big time. As David McWilliams says “start those printing presses”
Putin’s antics must really have messed up Germany as well as Russia’s own economy given the olive branches being held out today regarding Ukraine.
Common sense always returns when billionaires get around a table.
Such shite
Oh, isn’t that nice. JP Morgan (settled a fraud case brought by the US Justice Department for 13 billion USD) is predicitng the ECB moves. Meanwhile, the ECB hires Blackrock Financial (charged with securities fraud by the New York Attorney General) to provide advice as it ” as it thrashes out the final design of its plan, including how much, which assets, and what ranking of bonds it will buy.”
You can’t make this stuff up. What the hell are we doing in this monetary system that is run by fraudsters?
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