There may well be a little extra festive cheer in the Irish government this Christmas, and after years of nothing but economic gloom in their stockings it’s about time.
According to Enda Kenny, the nation’s Prime Minister, Ireland is on course to return to bond markets completely by the end of 2013.
Over the course of the next few days the Emerald Isle will be preparing to take over the European Union presidency for six-months and during an interview Kenny expressed optimism that (with the support of his fellow European leaders) an exit from the confines of their international bailout is also on the horizon for Ireland.
Over the course of the interview Kenny referred to a promise made by European leaders regarding improving Ireland’s costly bank rescue and stated: ‘We would hope to be the first country to actually exit [a bailout] in 2013 but that level of support that has been committed to Ireland is very necessary to be carried through. This assistance and this support is very necessary for Ireland to exit the programme.’
During the period in which the EU’s rotating presidency falls on Ireland the country is hoping to come to an accord with the European Central Bank regarding the bank debt deal. If this occurs the path will be clear for Ireland to leave its programme of fiscal relief – supplied by the EU and International Monetary Fund – behind by the close of next year.
However, resuming monthly bond auctions is still out of reach for Ireland and the IMF has expressed concerns that if Europe fails to make good on its promises to the nation it will be unable to attain durable market access.
Kenny commented that ‘It would be much easier to [return to debt markets in the second half of 2013] if we have a conclusion to the matter of the promissory notes and ECB negotiations’.
The promissory notes Kenny referred to are worth 31 billion Euros.
Kenny also acknowledged the resilience of his public while stressing that there are issues which remain unresolved, such as unemployment. He stated: ‘The Irish people have shown great patience and understanding of the difficulties that the government faces. No Prime Minister of the last 50 years has faced the challenges that my government faces. I remind our colleagues abroad internationally and in Europe that while Ireland has made good progress, solid progress, we are still in a fragile position.’
As of 12:35 pm
The Pound to Euro exchange rate is currently trading at 1.2264
The Pound to US Dollar exchange rate is currently trading at 1.6264
The Pound to Australian Dollar exchange rate is currently trading at 1.5503
The Euro to US Dollar exchange rate is currently trading at 1.3256
The Euro to Pound exchange rate is currently trading at 0.8150
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