DUBLIN, Sept 1 (Reuters) - Ireland expects to be able to return to markets well before its current bailout funding runs out at the end of 2013 but said the attractiveness of doing so had changed because of the lower interest rate it had negotiated on its existing rescue fund.
Michael Noonan also signalled that Dublin may try to tap the euro zone’s rescue fund, the EFSF, to help redeem an l1 billion euro bond which falls due in January 2014.
“Things going well we will be putting our toe in the market far ahead of that (back end of 2013),” Michael Noonan told a financial parliamentary committee.
“The arithmetic has changed as well. We were thinking that if 10-year money dropped below 6 percent (we would return to market) but now that we have renegotiated what is the point in going back if we can get money from a tad less than 4 (percent)?”
“What we will probably do when the opportunity arises is to run a parallel stream and the NTMA (national debt management agency) will see can we get money on the market.”
Noonan said the new flexibility of the EFSF could help it meet its bond redemption in January 2014.
“There is a big jump there and if we are still funding a big deficit when you add the repayment on to the deficit in 2014,” he said.
“But with the new powers of the EFSF fund to lend longer, I think we could be able to talk to them about it. We may be able to do exchanges there and spread it out further.” (Reporting by Carmel Crimmins; Editing by Ruth Pitchford)