Lack of growth ‘threatens democracy’

Over the next two months, Ireland should see substantial changes to its debt situation as the country prepares for a full return to the markets, but lack of growth posed a threat to democracy, Finance Minister Michael Noonan warned the EU.

On the cards for Ireland is a lengthening of the pay-back period for more than €40bn of bailout loans to at least 30 years; a possible cut in the interest rate; a cheap line of credit from the EU’s rescue fund; and the ECB being willing to buy government bonds.

This comes on top of indications that the talks with the ECB to cut the immediate cost of repaying €31bn billion of promissory notes are progressing well, while by June, the Government should know if it can get a deal on the other bank debt of €32bn.