Luxembourg, 20/06/2013 (Agence Europe) - On the fringes of the Eurogroup meeting on Thursday 20 June, the head of the Eurogroup, Jeroen Dijsselbloem, said the eurozone was prepared to provide aid to help Ireland and Portugal exit the bailout programme. In response to a question about whether the European Stability Mechanism (ESM) could provide extra funding to the countries as a backup when they fully return to the markets, he said it was too soon to say what form the aid would take.
Irish Finance Minister Michael Noonan pointed out that the extension of the repayment deadlines to the two countries for the loans from the EFSF and the EFSM would be fully approved by the Eurogroup and the Ecofin Council on Friday. Speaking of Ireland, he said that “as far as the troika is concerned, we have fulfilled our obligation”. He said Irish debt was “now fully sustainable” and the deficit should be reduced to below 3% by 2015.
Noonan said that his country's lending rates were “in the average” and any rises were just “the up and down of the markets”.
Similar confidence was also expressed by the ESM director general, Klaus Regling, who said that “spreads have not moved very much since April”. He said the eurozone bailout funds had done their job - restoring financial stability. Without the bailout funds, it was “very likely countries like Ireland and Portugal would no longer be part of monetary union”, he said, adding that “economies are rebalancing, conditionality works”. (EL/transl.fl)