Debt: Ireland to Exit Bailout by 2013

Noonan says Ireland will get back its economic sovereignty

Noonan says Ireland will get back its economic sovereignty

The finance minister of the Republic of Ireland, Michael Noonan, said on Thursday that the country should be out of its bailout programme by the end of 2013.

Ireland is currently in a 67.5 billion euro bailout as a result of the financial crisis in 2007.

Greece is scheduled to stay in their aid programme for at least a decade.

‘The Greek route’

Tanaiste Eamon Gilmore has defended the government’s position to not default on any of its eurozone debts. This announcement came after EU leaders revealed their debt deal from Brussels which included slashing Greece’s massive debts by 50%.

Gilmore said that Ireland looks to keep itself out of a situation where it indebted and in recession for the next 10 or 15 years.

“If we go down the Greek route, there is the consequence of that,” said Gilmore.

He added that instead, Ireland is looking to “pay their way” and recovery its economic sovereignty in order to spur growth in the country.

Despite Ireland’s disdain for the Greek default, investors throughout the globe have reacated positively to the debt measures agreed upon in Brussels. Worldwide markets have enjoyed shares rallies for several days.

The deal is also set to reduce Greece’s debt to 120% of its GDP by 2020. The eurozone and the IMF are still scheduled to give the country another 100 billion euros.

Debt deal reactions

While Ireland is looking to keep away from the newly announced 1 trillion euro bailout fund, leaders are expressing relief at the deal. They say it will create a more stable eurozone, which will benefit Ireland and all European countries.

Banks will accept a 50% write-off of Greek debt, which they originally balked at. They offered 40% instead, but German Chancellor Angela Merkel rebuttled that the banking sector had gotten of lightly in the crisis thus far, with taxpayers bearing the heavy end of the burden.

The recapitalisation scheme, which forces European banks to increase their assets by 100 billion euros to protect against further defaults, will not affect UK banks.

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