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Ireland, heading for bailout exit, wants credit line

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Ireland, heading for bailout exit, wants credit line

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The Irish government has said it will seek a 10 billion euro credit line when its EU-IMF bailout expires later this year.

Finance Minister Michael Noonan explained it was a precautionary measure and it would only draw on that money if it is needed due to unforeseen circumstances.

“If we had a credit line equivalent to a full year’s deficit, in other words about 10 billion euros, then if something happens … then we have a year’s funding of the deficit to allow the thing to work through,” Noonan said.

Dublin’s borrowing costs have fallen steadily since they peaked in 2011.

The country is now set to exit its 85 billion euro bailout at the end of this year.

That would make it the first eurozone state to end its dependence on a European Union aid programme, providing a much-needed success story for Brussels.