IMF: Irish outlook positive

AJAI CHOPRA who led the IMF’s negotiations on Ireland’s bailout and who has a reputation as a fearsome negotiator said he thought the long-term outlook for Ireland was good given his experience in dealing with other stricken economies.

Asked about senior bondholders taking some of the pain for the bank bailout, he noted that the bailout programme includes the option for the Government “to explore further liability management exercises that apply to subordinated debt”.

Speculation was rife that the IMF favoured burning all bondholders, including senior lenders to the banks, in the interest of lowering the burden on the state and the Irish taxpayer.