International money markets reward Ireland with low interest rates, bailout chief says
THE international money markets are rewarding Ireland with low interest rates because it didn’t burn senior bondholders, the head of Europe’s bailout fund has said during a visit to Dublin.
Klaus Regling, the managing director of the European Stability Mechanism (ESM), said Ireland has the lowest interest rates of the bailout countries.
“That may also have something to do with the way that the solution was found, without imposing haircuts on senior bond holders,” he said, during a visit to Dublin.
“And therefore the reward is from the markets to now to have particularly low interest rates for Ireland. That is also benefit for the economy on the budget.”
Mr Regling also reiterated his view there was little political consensus within Europe for Ireland to be able to tap into the ESM and recover some of the crippling cost of bailing out the banks.
Mr Regling held talks with Finance Minister Michael Noonan during today’s visit. He will also speak at the IIEA this afternoon.