He told the Oireachtas Finance Committee that if Ireland cannot access private financial markets over the next 18 months, money will run out in January 2014.
“Any deal involving a second bailout would have to be negotiated quite some time before then so we are probably looking at some time next year to open negotiations,” he said.
“At some point next year it is very possible there will be negotiations over a second bailout.”
His view was echoed by Stephen Kinsella of the University of Limerick, who told the committee: “I think we’ll need a second bailout in 2014. Everybody should realise that.”
Mr Whelan told TDs and senators the Government would have to come up with a good explanation to the taxpayers if it went ahead with a planned €3.1bn Anglo bond repayment on Mar 31.
The Government has said “technical discussions” are underway with the ECB on reducing the cost of winding down Anglo by reducing the interest on promissory notes.
However, Mr Whelan said this explanation will not be enough when the next bond repayment is due and the Government needed to be more upfront with the Irish people if they are to swallow the bond repayment.