Ireland ‘edging closer to debt default’

AS the cost of bonds hit new highs yesterday a leading economist warned Ireland is edging closer to a debt default than many realise.

Jim Power, chief economist, Friends First, said unless the Government can convince the markets it can service its mounting debt “access to IMF funding is inevitable”.

The state has to convince investors that “Ireland is a safe credit risk” in the next few months or it could be forced to throw itself at the mercy of the IMF by February, he said.