Promissory notes deal a 'significant' help - John Moran

Saturday 09 February 2013 20.56
Department Secretary General John Moran was addressing students at the Trinity Economic Forum
Department Secretary General John Moran was addressing students at the Trinity Economic Forum

The Department of Finance Secretary General said the promissory notes deal has significantly helped get Ireland to a position that by the end of the year "we don't need additional funding from the Troika into next year."

Speaking in Trinity College, John Moran said the market reaction to the deal has been very positive.

In an address to students as part of the Trinity Economic Forum, he said each time spreads go down it is easier for the NTMA to enter the markets.

Mr Moran said the definition of the end of the bailout is that we are able to issue our own debt.

He said there are a number of options now that savings will be achieved from the deal.

They include using the saving as a cushion if economic growth is not as strong as forecast, altering plans for spending cuts and tax rates or sticking to the current plan of cutting back.

He said getting the government deficit down to the required 3% by 2015 becomes much easier if we do not spend the savings.

Mr Moran also said the markets expect to meet those targets and there is huge credibility for Ireland if we meet them.

Asked whether his colleagues were high fiving when the deal was completed, he said they were very happy, and "it was a good feeling to finally get it across the line as it had been going on for a long time".

The Secretary General also said it was important to liquidate IBRC quickly and with no advance notice to protect the entity because “as everyone knows as soon as you announce we're closing down a business, people just run for stuff."

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