Ireland will emerge from a punishing three-year bailout with no strings attached after the government opted to return to international markets without the safety – and tough conditions – of a credit line from its EU partners.
Enda Kenny, Irish prime minister, announced the decision yesterday, setting up Ireland for a “clean exit” next month when it will become the first of four eurozone bailout countries to complete its rescue programme. “We will exit the bailout in a strong position,” Mr Kenny told the Irish parliament. “We still have a long way to travel but clearly are now moving in the right direction.”
The decision came despite the urging by some inter-national lenders, including the International Monetary Fund, to seek the credit line from the EU’s €500bn rescue fund at a time when Irish banks will soon be subject to their first stress test in more than two years. Some analysts, including the Fitch rating agency, have warned Dublin’s creditworthiness could be hit if new holes in the banking sector are found.