BILLIONAIRE investor Dermot Desmond said today that the Government’s debt problems will be solved by a default or through controlled inflation/economic growth.
The country’s debt to GDP ratio is expected to peak at 123pc this year although the Government is working with the EU/IMF/ECB troika to stabilise the levels.
Mr Desmond blamed the economic crash on poor economic forecasting, easy credit as well as poor risk assessment.
He also said there was “abysmal regulation” as well as a “housing bubble.”
Mr Desmond was speaking at the National College of Ireland in Dublin’s IFSC, the brainchild of the businessman, as it launched new courses with the Institute of Canadian Bankers.
He added that Ireland required political reform describing the electoral system as “not for purpose”.
He said that Tom Arnold, who is chairing the Constitutional Convention, would “hopefully put forward radical reforms” that would mean politicians putting the country before self-interest.
According to Mr Desmond, the banking systems also needs to be reformed and the future lies in non-bank lending platforms.
This would reduce both risks and the need for bailouts in the sector.