Noonan: Ireland to discuss leaving bailout programme in January

Finance Minister Michael Noonan said today that Ireland is "taking the first steps" on exiting the bailout programme.

Minister Noonan said that he has opened discussions with the Troika about how we leave the programme, and that will form part of discussions on the next review in January.

"We're just taking the first steps of making the preparations for leaving the programme and running out country in a normal way a normal sovereign country," he said.

Ireland has now passed eight reviews, drawn down 80% of the funding and met more than 160 commitments.

Minister Noonan also said that growth forecasts for next year will be revised downwards slightly, but that it will not effect the commitments on the size of the deficit for 2013.

He said that he sees no need for any second bailout currently, if the State can borrow about €17bn next year at good interest rates.

Concerns about health and social protection overspending are effectively masked by underspending in other departments, according to Minister Brendan Howlin.

Minister Noonan also says growth forecasts for next year will be revised downwards slightly, but that it will not effect the commitments on the size of the deficit for 2013.

"When you take real growth, plus inflation, that's the base for your tax flow and it doesn't change the arithmetic on the deficit," he said.

Despite some muted excitement at the possibility of exiting the bailout, both Ministers warned that significant challenges remain.