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AN adverse shock to market sentiment towards Irish bonds could result in an abrupt reversal of the recent declines in yields and complicate the exit from its EU-IMF bailout, the deputy head of the central bank said on Monday.
"There is ... little, if any, safety margin and even a small adverse shock to market confidence in the Irish Sovereign could complicate the exit from the programme," deputy governor Stefan Gerlach said in a speech in Berlin, which was published on the bank's website.
"Any new development leading to a reassessment of euro area risk by financial markets could result in an abrupt reversal of the recent declines in yields," he said.
Reuters
