The Minister for Finance has indicated that Ireland will attempt a return to the bond markets in the second half of next year.
Michael Noonan has said that the National Treasury Management Agency intends to 'put its toe in the market' in the third quarter of 2012.
Responding to questions from Sinn Féin's Pearse Doherty, the Minister said it would be worth going back into the market when the ten-year bond yield falls below the 5.8% interest rate being charged by the EU/IMF on the bailout package.
Mr Doherty pointed out that the ten-year yield was at 10.7% this morning and that he agreed with comments by Minister Leo Varadkar last week that Ireland would need a second bailout.
The Sinn Féin TD asked Mr Noonan about a 'Plan B' if Ireland did not return to the bond markets by the second half of 2013.
Minister Noonan told Mr Doherty that he had credibility and warned him against making such statements about a need for a second bailout.
Fianna Fáil's Michael McGrath said that the Minister had changed his position on when Ireland would need to go back to the markets to get funding.
He said the Minister was now talking about Ireland being fully funded up until the second half of 2013, contrary to previous comments about the country being funded by the EU and IMF.
Mr Noonan said he was giving an 'absolutely prudent' assessment and that the country was not in a 'difficult fiscal position'.
He said there was no question of the sovereign requesting additional funding during 2011 or 2012.
Interest rate on EU/IMF loan
Earlier, Mr Noonan said that a swift decision on a reduction of the interest rate on the EU/IMF loan is in the interest of Ireland and the EU, but ruled out 'point blank' a change in corporation tax rate in return for any reduction.
Speaking at Ministers' Questions, Mr Noonan said that the value of the interest rate reduction was being exaggerated.
He said that if Ireland got the same reduction as Portugal it would save Ireland €148m a year.
Mr Noonan contrasted this potential loss to the Exchequer of what he called the 'heart and soul of our industrial strategy', saying anyone who wanted Ireland to concede on the 12.5% tax rate had 'no negotiating position'.
He said that there was no way he was going to be 'waltzed around' by any member state on the corporation tax rate when the gain was so small.
