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Former IMF director says Ireland will need another bailout in 2013

Donal Donovan told a conference in London that it was unlikely Ireland could go back to the markets in 2013 when the current bailout deal runs out.

THE FORMER DEPUTY Director of the International Monetary Fund (IMF) has said that Ireland will need a second bailout package as soon as 2013 when the current rescue deal runs out.

Donal Donovan has predicted that the country will need assistance until 2015 even though the current EU/IMF deal runs out in 2013, The Guardian reports.

Just six months ago Ireland agreed an €85 billion bailout deal with the EU and IMF but Donovan, who worked for the IMF for 28 years retiring as deputy director, told a Business for Ireland conference in London that the country would need further help.

He said it was unlikely that the markets would be willing to lend to Ireland again at a reasonable interest rate until way beyond 2015:

We need money and one way could be to have a new European stability mechanism or even IMF facility at a lower scale [in 2013].

This would allow the refinancing of the obligations falling due and keep that going for another couple of years until perhaps then we come to the market.

Read more from Lisa O’Carroll on The Guardian website >

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