Euro rescue fund puts off bond auction

Wednesday 02 November 2011 19.54
EFSF planned to sell €3 billion of bonds for Ireland
EFSF planned to sell €3 billion of bonds for Ireland

The European bail-out fund has confirmed to RTÉ that it has postponed a plan to sell €3 billion worth of bonds to raise funds for Ireland.

A spokesman for the Luxembourg-based European Financial Stability Facility said the delay was due to "market conditions" - a reference to the financial turmoil triggered by the Greek referendum.

Asked when the bond auction might take place, the spokesman said it would be "not too long", but could not be more specific.

The postponed sale was due to be the first since the EFSF secured additional powers from EU leaders in July, which were then ratified by euro zone parliaments.

Market rumours suggest that the EFSF will attempt to reorganise the bond auction for two weeks' time.

The EFSF made its inaugural issue in January this year when it placed a €5 billion five-year bond in support of Ireland. It has placed two subsequent bonds in support of the financial assistance programme for Portugal.

The National Treasury Management Agency has said that Ireland has sufficient reserves on hand to meet all its upcoming financial obligations. The state has reserves of €11.6 billion according to the agency.