IMF urges Europe to help Ireland refinance crippling bank bailout

The International Monetary Fund yesterday urged Europe to help Ireland refinance its crippling bank bailout and consider taking equity in state-owned banks to help Dublin return to bond markets and avoid a second bailout next year.

Dublin, which signed up to an €85bn EU/IMF bailout in late 2010, aims to return to long-term debt markets later this year to help it prepare for the ending of official funding next year and meet borrowing needs of up to €20bn in 2014.

The IMF said Ireland would need a “substantial improvement” in market conditions to achieve a planned return to bond markets to avoid a new bailout when the current one expires at the end of next year.