Ireland rules out second bailout
Posted on July 6th, 2011
Vittorio Hernandez – AHN News
Dublin, Ireland (AHN) – Irish Prime Minister Enda Kenny rejected a second bailout for the country in response to fears raised by cabinet members that Ireland may have difficulty borrowing money in the international debt markets.
Kenny assured on Monday the country that the $122 billion (EUR 85 billion) it secured from the International Monetary Fund, European Union and the European Central Bank is sufficient until the bailout program runs until the end of 2013. He added Ireland has sufficient money to deal with the program’s requirements.
The Taoiseach gave the assurance after Irish Transportation Minister Leo Varadkar opined that Ireland may be forced to ask for more funds from the EU and IMF before 2013. Finance Minister Michael Noonan expressed hope that the country’s debt management agency would be able to raise some private funds at the end of the last quarter of 2012 after a two-year rest.
The Irish Parliament ratified the bailout in December 2010. The money was used to recapitalize Ireland’s debt-ridden banks and restore the nation’s battered public coffers.
When the bailout was ratified, then Finance Minister Brian Lenihan said that Ireland would likely reach the target date of 2013 to reduce national debt to just 3 percent of the country’s gross domestic product.
Noonan, who was Fine Gael’s finance spokesman at that time, said that Ireland’s debt used to be manageable, but the bank debts made the situation unsustainable. He described the Irish taxpayers’ shouldering of the bank debts as an obscenity.
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Tags: Bailout, Second Bailout
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