By Jason Douglas
LONDON--A deal to refinance part of its debts has left Ireland
in a much better position to stage an economic recovery, Finance
Minister Michael Noonan said Thursday.
In a speech at financial information firm Bloomberg L.P.'s
London offices, Mr. Noonan said the deal Ireland struck on Feb. 7
to reschedule payments on 31 billion euros ($41 billion) of debt
pumped into two defunct lenders in 2010 has removed a millstone
around the neck of the Irish taxpayer.
"This burden had eroded confidence and limited the economy's
ability to grow. Ireland has now succeeded in alleviating this
burden and placing the state in a position where the debt is more
manageable and the state is provided with the space and time to
recover and grow," Mr. Noonan said, according to a text of his
remarks.
Ireland has pumped a total of EUR64 billion into its stricken
banks during the past five years and in 2010 was forced to seek a
EUR67.5 billion rescue package from the European Union and
International Monetary Fund after the spiraling cost of the bank
bailout shut Ireland out of international capital markets.
Mr. Noonan said Ireland remains committed to meeting the terms
of its rescue deal and is determined to exit the program and return
to financing itself later this year.
"The real success of this program will be Ireland making a full
return to the markets," he said.
"I intend that Ireland will give Europe its first success story
as the recessionary cycle moves back in the right direction."
Mr. Noonan added that the government is also hopeful of selling
its stakes in Ireland's banks at a profit following the successful
sale of insurer Irish Life Assurance Co. for EUR1.3 billion to
Canadian financial services firm Great-West Lifeco Inc.
(GWLIF).
Mr. Noonan said Ireland's economy is expected to expand by 1.5%
in 2013 despite a sluggish global economy. Rising exports are
expected to offset weak domestic demand, he said.
The minister added that Ireland would like to see the U.K.
remain in the EU. U.K. Prime Minister David Cameron has vowed to
renegotiate the terms of Britain's membership of the EU and put any
new deal to the people in a referendum, raising fears of a British
exit.
"In our view, the EU needs the U.K. and, like Ireland, the U.K.
needs the EU," Mr. Noonan said.
Write to Jason Douglas at jason.douglas@dowjones.com