Ireland to exit bailout program without backstop

AP News
Posted: Nov 14, 2013 7:07 AM

DUBLIN (AP) — Ireland's government says the country will exit its international bailout agreement next month on its own and will not negotiate a new precautionary credit line.

Prime Minister Enda Kenny announced the move in Ireland's parliament ahead of a meeting of eurozone finance chiefs in Brussels later Thursday.

Kenny says Ireland will rely on its 25 billion euros ($34 billion) in emergency government reserves to reassure private investors that the country will be able to pay its creditors when the treasury returns to bond markets for financing next month.

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Ireland was forced in November 2010 to negotiate a three-year loan deal with the European Union and International Monetary Fund after the state's own cost of borrowing soared to unsustainable highs. Ireland since has exceeded every EU-IMF target for reducing its deficits.