ECB plan could greatly cut Ireland’s borrowing costs

The ECB’s ambitious plan to restore stability to the eurozone could greatly reduce the cost of borrowing for Ireland when it exits the EU/IMF bailout programme at the end of next year.

ECB president Mario Draghi yesterday committed the bank to outright monetary transactions, which means buying an unlimited amount of short-term bonds of eurozone members that were finding it difficult to access market funding, if that country agreed to structural adjustment reforms.

Crucially, this scheme will be extended to countries exiting bailout programmes.