Our cost of borrowing is plunging
THE Government can now borrow short-term debt more cheaply on international markets than the UK for the first time since the start of the global financial crisis.
The remarkable drop in Ireland's cost of borrowing on international markets passed a new milestone yesterday, when the yield, or interest rate, on five-year Irish bonds dropped below the UK rate and to almost the same level as the US is charged. Ireland would still pay more to borrow over the longer term than either of those bigger countries, however.
It came as analysts at Dutch bank ING forecast that Ireland could regain its coveted 'A' credit ratings as early as next year from two of the three main agencies after last Friday's upgrade by Moody's.