Ireland may seek another loan
By Carmel Crimmins |
May 30, 2011, Monday
|
Print Edition
Print Edition
IRELAND may have to ask for another loan from the European Union and International Monetary Fund because it will struggle to return to debt markets to raise funds next year, a government minister said yesterday.
Transport Minister Leo Varadkar became the first Cabinet member to cast doubt in public on Ireland's ability to raise cash on the bond market because of punishing yields demanded by investors.
"I think it's very unlikely we'll be able to go back next year. I think it might take a bit longer ... 2013 might be possible but who knows?" Varadkar was quoted by The Sunday Times.
"It would mean a second program (of loans from the EU/IMF)," he said. "Either an extension of the existing program or a second program. I think that would generally be most people's view."
Deputy Prime Minister Eamon Gilmore told broadcaster RTE that fears of a domino effect from Greece's problems were overblown. The possibility of a Greek default has sent bond yields rocketing for indebted Ireland, Portugal and Spain.
"It's not a situation that if Greece defaults then there are immediately implications for Ireland," Gilmore said. "If Greece defaults there are implications for the wider eurozone and obviously we are part of that."
"It is wrong to put Ireland in the same basket as Greece," he said.
Greece's hopes of averting default dimmed over the weekend amid fears the country, whose debt burden stands at around 330 billion euros (US$472 billion), may have missed fiscal targets set by its creditors.
The IMF has dismissed reports that an international inspection team had found that Greece had missed all its fiscal targets. But the current mission to Athens has stayed far longer than on previous occasions and is locked in talks with the government to get economic reforms on track.
Athens' creditors are focused on raising more funds from privatization.
Transport Minister Leo Varadkar became the first Cabinet member to cast doubt in public on Ireland's ability to raise cash on the bond market because of punishing yields demanded by investors.
"I think it's very unlikely we'll be able to go back next year. I think it might take a bit longer ... 2013 might be possible but who knows?" Varadkar was quoted by The Sunday Times.
"It would mean a second program (of loans from the EU/IMF)," he said. "Either an extension of the existing program or a second program. I think that would generally be most people's view."
Deputy Prime Minister Eamon Gilmore told broadcaster RTE that fears of a domino effect from Greece's problems were overblown. The possibility of a Greek default has sent bond yields rocketing for indebted Ireland, Portugal and Spain.
"It's not a situation that if Greece defaults then there are immediately implications for Ireland," Gilmore said. "If Greece defaults there are implications for the wider eurozone and obviously we are part of that."
"It is wrong to put Ireland in the same basket as Greece," he said.
Greece's hopes of averting default dimmed over the weekend amid fears the country, whose debt burden stands at around 330 billion euros (US$472 billion), may have missed fiscal targets set by its creditors.
The IMF has dismissed reports that an international inspection team had found that Greece had missed all its fiscal targets. But the current mission to Athens has stayed far longer than on previous occasions and is locked in talks with the government to get economic reforms on track.
Athens' creditors are focused on raising more funds from privatization.
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