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Doherty welcomes NTMA step but urges caution

5 July, 2012 - by Pearse Doherty TD

The Sinn Féin Finance Spokesperson Pearse Doherty, responding to the NTMA Bills issuance this morning, said the successful auction was welcome but caution is needed.

Deputy Doherty said:

“The auction this morning is a welcome first step in terms of short-term bill issuance, but must be greeted with caution. The fact that a rate of 1.8% was achieved is better than expected, however 3 month bills are a huge step away from proper bonds. This state will have to go to the bond market in the first part of next year, and how the international market perceives us then cannot be speculated against what happened today. 

“The Government will attempt to oversell what happened today, as they have done for previous recent events, but it's important that while we recognise that it is indeed a positive short-term move, the direction this state is going in must be changed if we want to go back to the international bond markets next year for long-term funding.

“All the economic indications are that this state's growth levels are not performing as they should and much of that is down to the Government's austerity agenda. The bond markets will want to see growth, they will want to see sensible policies and they will want to see the separation of banking debt from sovereign debt. They will not be blinded by spin.”

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