Fianna Fáil Spokesperson on Finance Michael McGrath TD has said that a contingent credit line was always going to be an important element of Ireland’s exit from the current troika programme but added that the government needs to ensure such a credit line does not take the form of a second programme with onerous strings attached.
Deputy McGrath was reacting to the news that the government is seeking a €10 billion credit line from the troika to smooth Ireland’s exit from the current programme.
“Without any details whatsoever of this precautionary credit line, Sinn Féin have already declared it as a ‘second bailout’ – an outcome that they seem to welcome with glee. Perhaps they feel the need to do this given they have said on many times that Ireland would need a second bailout. Once again for them, securing party political advantage seems to come ahead of responsible opposition.
“It has been obvious for some time that Ireland’s exit from the current programme would be underpinned by some form of a precautionary credit line or safety net. Such a credit line has the potential to improve market confidence and ensure a sustainable end to our reliance on official funding. The conditions attaching to the drawdown of funds under this credit line will be critical including any impact such funding may have on post programme monitoring by the troika.
“Fianna Fáil will not jump to conclusions about this precautionary credit line until we see the full details. We want to see the country successfully exit the current programme and be in a position to secure funds on the international markets at reasonable rates of interest. We will ask the Minister for Finance probing questions on this precautionary line of credit and hold the government to account for its detail.”