Ire­land moves to quash talk of more EU-IMF help

Kathimerini English - - Business & Finance -

DUBLIN (Reuters) – Ire­land’s gov­ern­ment moved yes­ter­day to quash spec­u­la­tion it would be forced to seek a sec­ond bailout from the Euro­pean Union and the In­ter­na­tional Mon­e­tary Fund and said it would make a ten­ta­tive re­turn to in­ter­na­tional debt mar­kets in the fi­nal quar­ter of next year. Dublin is try­ing to dis­tance it­self from the woes of eu­ro­zone strug­gler Greece, which is try­ing to avoid a po­ten­tially dev­as­tat­ing de­fault and seems cer­tain to re­quire a sec­ond bailout to plug a loom­ing fund­ing gap. Fi­nance Min­is­ter Michael Noo­nan cat­e­gor­i­cally ruled out Dublin re­quir­ing a top-up to its 85-bil­lion-euro res­cue pack­age, seek­ing to limit the fall­out from a cabi- net col­league’s warn­ing over the week­end that an­other bailout may be needed. “There is no ques­tion of a bailout pack­age hav­ing to be brought in next year,” Noo­nan told state broad­caster RTE. “We have suf­fi­cient money from the IMF and Euro­pean in­sti­tu­tions to carry the coun­try for­ward in all even­tu­al­i­ties and the pro­gram runs un­til the end of 2013. A sec­ond bailout doesn’t arise be­cause of that.” Noo­nan said Dublin would test mar­ket sen­ti­ment for Ir­ish debt in the fi­nal quar­ter of 2012 af­ter a two-year hia­tus. “We won’t be fully back in the mar­kets but we hope that the NTMA [debt man­age­ment agency] will be able to raise some pri­vate funds in the mar­ket in the last quar­ter of next year.” Many econ­o­mists have come round to the view that some sort of fur­ther aid and re­struc­tur­ing of its debt is likely to be in­evitable to al­low Greece to deal with a debt bur­den of more than 150 per­cent of its an­nual na­tional out­put. lender, to less than 1 bil­lion eu­ros, and a 6.9 per­cent de­cline at Al­pha Bank Cyprus Ltd to 3.3 bil­lion eu­ros, the cen­tral bank re­ported. De­posits at Eurobank EFG Cyprus Ltd fell 3.2 per­cent to 2.4 bil­lion eu­ros and at Pi­raeus Bank (Cyprus) Ltd 1.3 per­cent to 1 bil­lion eu­ros. De­posits at Em­po­riki BankCyprus Ltd fell 14 per­cent to 315.8 mil­lion eu­ros. De­posits at Greek banks on the is­land last year rose 30 per­cent as Greek de­pos­i­tors trans­ferred money to Cyprus on con­cerns Greece would de­fault, re­struc­ture its debt or aban­don the euro and im­pose re­stric­tions on cap­i­tal flows. (Bloomberg) nia’s mi­nor­ity stake in Romt­ele­com SA, Ro­ma­nian Com­mu­ni­ca­tions Min­is­ter Va­le­rian Vreme told Bloomberg. OTE de­cided not to bid on the stake be­cause of the debt cri­sis Greece is cur­rently go­ing through, Vreme said in an in­ter­view in Bucharest.

(Bloomberg) the most im­por­tant would be to lay out a broad pack­age of eco­nomic mea­sures to re­store con­fi­dence in so­ci­ety and the econ­omy. (AFP)

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