The government is planning to borrow €500 million on the financial markets today in what will be a further test of sentiment towards Ireland.
The National Treasury Management Agency (NTMA) is looking to borrow the 3-month debt known as Treasury Bills.
The decision of ratings agency Fitch to upgrade its assessment of Ireland from negative to stable provides a welcome boost to the government ahead of the step-back todau into the money markets.
The NTMA which borrows money on behalf of the State will attempt to borrow €500 million in an auction today.
If it goes ahead the transaction will mark a further step in an Irish return to borrowing without the help of money from the European Union or the International Monetary Fund.
Fitch upgrade
Yesterday the atings ragency Fitch revised the Irish economic outlook to stable.
It said the affirmation and revision reflected our “continued progress with "fiscal consolidation, external adjustment and economic recovery, as well as the sovereign’s improved financing options".
Fitch judges that the risks surrounding the adjustment path have narrowed and become more balanced.
The body claims that fiscal consolidation remains on track and broadly in line with the original trajectory of the EU-IMF programme.
This envisages a 120% debt/GDP ratio in 2012 and peaking in 2013-14 before declining.
