Dublin (AFP) – Eurozone member Ireland will exit its international bailout program next month without the need for a precautionary credit facility, the government said on Thursday.
The Department of Finance said in a statement that it would not need a backstop owing to large state cash reserves and public finances which are under control amid a climate of historically-low Irish government bond yields.
“Following a careful and thorough assessment of all of the available options… the Irish government has today decided that Ireland will exit the EU/IMF programme in December as planned and without a pre-arranged precautionary credit facility,” the statement said.
Ireland will on December 15 become the first eurozone country to exit a financial bailout program after last week passing a final stringent review by the European Union and International Monetary Fund.
Dublin was left to decide whether a precautionary credit line, or insurance fund, was needed in case market conditions become unfavourable once it exits the bailout safety net.
“The Irish government’s assessment is that the best option for Ireland is to exit the program as planned in December without a pre-arranged backstop,” the statement on Thursday said.
“The market and sovereign conditions are favourable towards Ireland with the country returning to the markets in 2012, holding over 20 billion euros in cash reserves at year end which we can use to ensure that we can meet our maturing commitments and funding costs till early 2015 and (with) Irish sovereign bond yields at historically low levels.
Copyright 2013 The National Memo