THE NATIONAL TREASURY Management Agency’s Chief Executive John Corrigan said today that international investors acknowledge the strong progress Ireland is making in tackling its domestic problems but that “the stresses in the eurozone overshadow everything else”.
The resolution of the eurozone issues are “fundamental” to Ireland returning to the bond markets next year, he said – adding that he hoped that Ireland could do so next year.
Reflecting on 2010, John Corrigan described the year as “exceptionally challenging” because of the escalating debt crisis and the increasing demands placed on the NTMA by the economic and banking collapse.
In its annual report for 2010, the NTMA said that Ireland has borrowed €23.6 billion from the EU/IMF programme so far, at an average interest rate of 5.6 per cent and an average maturity of 6-8 years. (However, developments tonight have changed this state of affairs – read: Ireland gets relief on bailout conditions )
The report stated that General Government Debt is projected to rise by €25 billion in 2011 to €173 billion (111 per cent of GDP).
In 2013, the debt-to-GDP ratio is expected to peak at 118 per cent, as at this point the debt is projected to reach a nominal value of €200 billion, after which is is expected to begin to declining.