ECB's open hostility damaging us
It has to be recognised that the 2010 deal struck with the troika isn't working, writes Colm McCarthy
Published 22/01/2012 | 05:00
Ireland's reliance on lending from the EU and IMF is due to be phased out at the end of 2013.
From that point onwards, if all goes to plan, the State will fund both its ongoing budget deficits and the re-financing of maturing debts entirely from the bond market. The first ingredient in baking this cake is Ireland's compliance with the deficit-reduction path outlined in the agreement with the official lenders, the EU and the IMF, at the end of 2010. The second is the willingness of the markets to resume lending, at sustainable interest rates, once official lending comes to an end two years hence.
The availability of the €67.5bn being borrowed from the EU and IMF is conditional on compliance with the deficit-reduction programme. Failure to deliver would result in a descent into a Greek-style requirement for a revised deal: in effect, a second bailout.