Joe McHugh TD has said that the settlement by delivery of a long-term Irish Government Bond of the €3.06bn promissory note instalment due for payment on Saturday, is a very ‘definite gain’ in debt sustainability for the Irish State, that has the net effect of reducing the economic cost for the State as a whole of refinancing the payment.
Responding to this evening’s announcement by Minister for Finance Michael Noonan TD, Deputy McHugh said: “Today’s settlement of the €3.06bn promissory note instalment by way of delivery of a long-term Irish Government Bond, which was due for payment next Saturday, is a very definitive gain in debt sustainability, which reduces the economic cost for the State as a whole of refinancing this payment.
“Resolving the banking and debt crisis is a work in progress, and today’s positive outcome is one significant step forward in that process. The State is still spending €15.8bn more per annum than it is taking in.
“Everybody knows the need for balance between spending and income at household level, and similarly there must be balance at sovereign level.
“Economic recovery requires the availability of a normal banking service. Today’s outcome is a positive staging post on the journey to recovery.”.