Ir­ish de­bate.

Kathimerini English - - Business & Finance -

Pa­trick Hono­han, gov­er­nor of the Cen­tral Bank of Ire­land, said the coun­try will avoid eco­nomic “dooms­day,” as a gov­ern­ment min­is­ter and prom­i­nent pro­fes­sor sug­gested the nation should resched­ule debts from its as much as 85-bil­lion-euro ($121 bil­lion) bailout. Hono­han was re­spond­ing to Mor­gan Kelly, an eco­nom­ics pro­fes­sor dubbed Ire­land’s Doc­tor Doom, who wrote in the Ir­ish Times news­pa­per that Ire­land faces a “pro­longed and chaotic na­tional bank­ruptcy.” “What we are work­ing on is a plan, that if things go well in terms of eco­nomic growth, is clearly some­thing that will bring debt on a sus­tain­able path,” Hono­han said in an in­ter­view with Dublin­based RTE ra­dio yes­ter­day. “If things don’t go well, it will be much more dif­fi­cult. In that case, there will be a prob­lem.” Kelly said the coun­try faces “eco­nomic ruin” un­less it walks away from last year’s bailout, with­draws sup­port for banks and cuts its fis­cal deficit to zero. Ire­land’s debt will peak at 116 per­cent of gross do­mes­tic prod­uct in 2014, ac­cord­ing to gov­ern­ment fore­casts pub­lished on April 29. The fig­ure was 25 per­cent at the end of 2007. En­ergy Min­is­ter Pat Rab­bitte said yes­ter­day “in my own view” the debt stem­ming from Ire­land’s bailout “must be resched­uled.” (Bloomberg)

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