Central Bank deputy issues warning on bailout exit

The Central Bank has warned that Ireland's efforts to exit the bailout programme could be hampered by the prospect of a sharp slowdown in economic growth or a rise in mortgage arrears.

In a speech in Berlin, the deputy Governor of the Bank Stefan Gerlach called for a deal on Ireland's banking debt to help the country exit the bailout deal.

He said a slippage in growth or an unexpected rise in public debt could complicate Ireland's efforts to make a full return to the markets.

His comments come as the National Treasury Management Agency announced plans to sell a further €500m this week.

Ireland's cost of borrowing has halved in the past year because of improved sentiment towards the country, and the promise of an EU bank debt deal.