Gradual return to debt markets predicted

Ireland’s European creditors will say in a new quarterly report that the country is on track to gradually return to debt markets despite fragile market sentiment and the risk that banks will need additional capital, according to documents seen by Reuters.

Ireland has not tapped the debt markets since it took a three-year, €85bn troika bailout in 2010.

The Government plans to dip a toe back in by issuing around €1bn of treasury bills in multiple tranches, starting in the next six weeks, according to a draft European Commission report obtained by Reuters from a German source.