IMF is at the Irish door

Economist Colm McCarthy has starkly warned that the International Monetary Fund will be running Ireland by February if the Budget “fails to convince the financial markets”.

In what he calls a “scary scenario”, outlined in the Sunday Independent yesterday, Mr McCarthy says “the game is up” if the Government flunks the Budget on December 7.

The sense of impending doom is also evident in the latest Sunday Independent/Quantum Research poll, which found that a massive 64 per cent believe it to be “inevitable” that Ireland will need the help of the IMF in the new year.

Mr McCarthy has said that if the Budget does “too little” to convince the financial markets, the Government will be unable to finance itself — “which means an IMF/European bail-out and economic policy dictated from outside the country for the first time since the State was founded”.

He warns that the country’s cash reserves will run low by next spring, unless Ireland re-enters the bond market with a “pretty big issue” of up to €5bn.

“Realistically, the Government needs to do this in January or February at the latest,” he says.

The Irish Independent

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell