Pearse Doherty
Question:22. Deputy Pearse Doherty asked the Minister for Finance the options that are available when Ireland leaves the formal troika programme; and if he will provide an evaluation of each option. [49198/13]
View answerWednesday, 20 November 2013
Questions (22)
Written answers
As the deputy will be aware, the Government decided on 14 November that Ireland is now in the best position to exit the EU-IMF programme of financial assistance on December 15 without the need to pre-arrange a new precautionary credit line from our EU and IMF partners. There were essentially two options available.
i. to exit without a pre-arranged precautionary facility or backstop.
ii. to exit with a pre-arranged precautionary facility or backstop
Following a careful and thorough assessment of all of the available options, and broad consultation with the European Commission, the ECB, the IMF, the President and members of the Eurogroup, the Governor of the Central Bank of Ireland and the NTMA, the decision was taken to exit without a pre-arranged precautionary facility or backstop.
The Government decided that exiting without a pre-arranged precautionary facility or backstop is the right decision for Ireland. Market confidence in Ireland is high, the public finances are under control, we are reducing our deficit and debt levels and economic conditions and sentiment are improving.
In relation to options (ii) above, taking account of all of the views received during the consultative process, the Government concluded that this option was not appropriate to Ireland's circumstances as the option of exiting without a precautionary credit line was preferred in view of the favourable market conditions at present. There is no certainty that conditions would be as favourable in a year’s time when any precautionary facility would end, or at a later date, if the option for further six month renewals were exercised.