The National Treasury Management Agency (NTMA) is warning that a full Irish return to the bond markets is critically dependent on external factors.

The NTMA is raising concerns about the Eurozone crisis and securing a banking debt deal.

However the agency raised €2.5 billion in a sale of 5-year bonds yesterday at an interest rate of 3.3%.

The Agency today reported results for last year and provided a review of activities across the range of its business functions.

The NTMA Chief Executive John Corrigan said that Ireland had made considerable progress in its phased return to the markets over the past year.

He believes that with the success of the €2.5 billion syndicated bond sale yesterday we had eliminated the "funding cliff" presented by a €11.9 billion bond repayment due in mid January 2014.

Plans to increase market engagement

He added that the NTMA intends to step up its re-engagement with the market during 2013 so that Ireland is positioned to successfully exit the EU-IMF programme.

Its working plan is to raise €10 billion - subject to market conditions - one quarter of which was achieved with the bond sale yesterday.

Funds drawn down under the EU-IMF programme amounted to €56 billion at December 31st last.

Loans from EU sources amounted to €37 billion and IMF loans amounted to €19 billion, the Agency says.

Mr. Corrigan also said the NTMA would continue its regular auctions of short-term Bills, which recommenced in July 2012, with the first 2013 auction scheduled for Thursday January 17th.

He hopes that at least a further €7.5 billion will be raised during the year but that a failure to secure a banking debt deal would not help that process.