Ireland unlikely to need a second bailout, Merrill Lynch forecasts

Ireland is unlikely to require a second bailout deal, according to Merrill Lynch, one of the most upbeat commentators on the country’s economic prospects.

Speaking yesterday, Bill O’Neill, chief investment officer for Merrill Lynch Wealth Management in the EMEA region, said that Ireland will not require further aid even if it fails to restructure its bank recapitalisation costs; adding that “the role of Ireland as a proxy for contagion risk has gone”.

Back in January, Mr O’Neill gave a very bullish outlook for the economy, saying it could grow by as much as 1.6% this year, with the country’s trade position also likely to continue to improve.