NTMA raising €1 billion through the sale of its 30-year bond at a rate of 1.307% already shows how Ireland is taking advantage of stimulus measures
Brian Hayes MEP today said that Ireland is set to win more than most from the ECB’s Quantitative Easing Programme which was launched on Monday 9th March.
“Ireland will be a top-earner from the ECB’s bond buying programme. The structure of the programme will benefit us more than most. The Central Bank of Ireland will be buying Irish government bonds and the Government will be paying interest on these bonds to the Central Bank. The State will benefit from this as most of the Central Bank’s profits are returned directly to the exchequer. This all means that come 2016 when the ECB’s QE programme is in full swing, the State could see hundreds of millions flowing into the economy.
“Ireland’s borrowing costs are currently at record lows on the back of QE – the State is getting 10-year money at 0.76%. Think that at the height of the crisis, Ireland was borrowing 10 year money at 14 per cent. This huge reduction will benefit us well into the future and will dramatically reduce the cost of long-term borrowing.
“The NTMA raised €1 billion this week of its 30-Year Irish Government bond at a remarkable yield of 1.307%. If we think that only last month the NTMA raised €4 billion on the same bond at a rate of over 2%. The Government is rightly taking advantage of QE at an early stage.
“Quantitative Easing has pushed the euro to 12 year lows against the dollar this week. Irish exporters are already taking full benefit from cheap euros. Many analysts have said that the euro could reach parity with the dollar sometime this year. 2015 could be the year for a massive push by Irish exporters to gain market share in two very important markets, the US and the UK.”