Noonan: Spanish deal may allow us cut debt

A solution to Spain’s massive bank problems gaining support in the EU would offer Ireland an opportunity to cut the cost of our bank debts, Finance Minister Michael Noonan has said.

It came as rising concerns over Greece’s eurozone future pushed Irish bond yields higher, potentially complicating Government plans to return to international bond markets.

Irish 10-year government bond yields nudged briefly above 7% on the back of market speculation that Greece could leave the single currency. If Irish bond yields remain above 7% for an extended period, it could hamper plans to return to the market.