There’s no need of a second bailout, says Irish government

THE Irish government has moved to quash speculation it would be forced to seek a second EU-IMF bailout and said it would make a tentative return to international debt markets in the final quarter of next year.
By The Newsroom
Published 31st May 2011, 12:50 BST

Dublin is trying to distance itself from the woes of eurozone struggler Greece, which is trying to avoid a potentially devastating default and seems certain to require a second bailout to plug a looming funding gap.

Finance Minister Michael Noonan categorically ruled out Dublin requiring a top-up to its 85 billion-euro (£73bn) rescue package, seeking to limit the fallout from a cabinet colleague’s warning over the weekend that another bailout may be needed.

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“There is no question of a bailout package having to be brought in next year,” Mr Noonan said. “We have sufficient money from the IMF and European institutions to carry the country forward in all eventualities and the programme runs until the end of 2013.”

Mr Noonan said Dublin would test market sentiment for Irish debt in the final quarter of 2012 after a two-year hiatus.

“We won’t be fully back in the markets but we hope that the NTMA (debt management agency) will be able to raise some private funds in the market in the last quarter of next year.”

Ireland’s debt is expected to top 120 per cent of GDP in 2013 and Irish bond yields have sky-rocketed as Greece’s debt crisis deepened, reflecting market concerns it may face a similar fate.

Related topics:GreeceGDPIreland