Ireland issued its first new bonds since September 2010. They were offered to existing bondholders, who held government bonds which were due for payment. The new bonds are repayable in three years time. The total value of the issue was €3.5 billion at a rate of 5.2%. This is positive news for Ireland as it shows that investors are willing to hold Irish bonds. Ireland is the first of the three countries (Ireland, Greece and Portugal) to re-issue bonds with this level of maturity following IMF-EU bailouts.
Justin Doran is a Lecturer in Economics, in the Department of Economics, University College Cork, Ireland.