Business Irish

Sunday 24 September 2017

Enda Kenny: ‘€5bn bond sale one of a number of encouraging signs’

Taoiseach Enda Kenny
Taoiseach Enda Kenny

Fiach Kelly in Brussels

TAOISEACH Enda Kenny says the sale of €5bn in ten-year government bonds is a big signal about progress being made on the economy.

At the beginning of a two day summit of European leaders on growth and jobs, Mr Kenny said yesterday's bond sale, which moves Ireland closer to exiting the bailout, is one of a number of encouraging signs.

He said the Government's plan to get the public finances under control "is working".

"Our objective is to have our deficit down to 3pc by 2015," Mr Kenny said. "There has been significant movement arising from those decisions, be it in regard to promissory notes, the fall in yields from over 14pc down to four, the sale of ten year bonds are big signals about the movement that Ireland is making.

"The growth figures for Ireland this year, while they are low, they're encouraging. And we recognise we've come a distance but a great deal of challenges lie ahead."

However, Mr Kenny declined to comment on reports that senior bank bondholders may be burned as part of a Cypriot bailout, and what effect this would have on Ireland.

Eurozone authorities refused similar requests for Ireland in respect of the now liquidated Anglo-Irish Bank, but a move to burn bondholders in Cyprus could give the Government more leverage as it seeks further bank debt relief.

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