The plan is to never have to use the cash, but the sum involved would be enough to cover all of next year's expected shortfall in government spending in the event of some unforeseen crisis. The €10 billion facility will serve as an 'insurance policy' in case an unforeseen international crisis drives up borrowing costs. It would help bridge the move from bailout to being fully funded on the markets.
News of the overdraft comes as the head of the 17-strong group of eurozone finance ministers, Holland's Jeroen Dijsselbloem, said Ireland would get support to exit the bailout programme.
Finance Minister Michael Noonan is hopeful that a deal on a credit line can be struck with no new conditions, claiming strict budgetary scrutiny on how states manage their finances are now already in place across Europe. "What it would mean is a credit line that we could draw on if we needed to draw on it", Mr Noonan said. "We'd be hoping that we never have to draw on (it). It's just to have it there as comfort to the markets and then we fund on the markets."
Full article
© Irish Independent
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article