Wednesday 25 January 2017

Regling says no nation is likely to seek funding

Published 21/09/2010 | 05:00

Former IMF economist Klaus Regling who carried out the probe for the Government into the collapse of Irish banking during the
summer said he doesn't expect any country will need to seek financial assistance as States cut their budget deficits. Photo: Frank McGrath
Former IMF economist Klaus Regling who carried out the probe for the Government into the collapse of Irish banking during the summer said he doesn't expect any country will need to seek financial assistance as States cut their budget deficits. Photo: Frank McGrath

THE head of Europe's bailout fund said he doesn't expect that any country will need to seek financial assistance as governments cut their budget deficits.

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"My central scenario is there is no need for the EFSF to become operational," chief executive officer of the European Financial Stability Facility Klaus Regling told Bloomberg News yesterday.

"That's based on the assessment that all the member states are moving in the right direction."

Mr Regling's assessment comes as the yields that investors demand to hold Irish and Portuguese debt over German bunds climb to records amid renewed concern over their national finances.

Fitch Ratings and Moody's Investors Service yesterday gave their top rating to the fund, which was created in May to halt the spread of the Greek sovereign debt crisis.

"Now we can seriously talk to investors around the world in case of the unlikely event that we need to provide financial assistance to a member state," said Mr Regling, a former European Commission official.

Irish Independent

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