Review pours cold water on hopes for early return to bond markets

A Central Bank report suggests that Ireland may not be in a position to return to the long-term bond markets as soon as is hoped.

In its wide-reaching macro-financial review, the Central Bank said yesterday that Ireland’s debt sustainability could be seriously hampered by continued weak economic growth and numerous other issues, such as further property price falls and capital shortfalls in state-owned banks.

“While improved secondary market yields on Irish bonds and the recent successful bond swap by the NTMA are positive developments, Irish sovereign debt sustainability remains highly sensitive to future GDP growth,” the report stated.