Securing credit line before exiting bailout ‘not essential’

Finance Minister Michael Noonan said securing a precautionary credit line prior to exiting the EU/IMF bailout programme was not essential because of the country’s successful re-entry to the bond markets.

Speaking to reporters in Dublin yesterday, Mr Noonan said: “We don’t need it [precautionary line] at present. The yield on the 10-year bond is 3.93% and if we get an extension on the [bailout loan] maturities, that will put further downward pressure on the yield.”

“We are not actively pursuing a precautionary line. It will come up in discussions with the IMF when I am in Washington next week. However, it is not urgent at present. What we want to get is the extension on the maturities.”