Belfast Telegraph

Tuesday 29 July 2014

Austerity was wrong option for Republic of Ireland, says former IMF chief

A former International Monetary Fund (IMF) chief has admitted that austerity alone as a way of solving the Republic of Ireland's economic crisis was a mistake and is counter-productive.

Ashoka Mody, former IMF chief of mission to Ireland, also said that bondholders should have been burned, while a sovereign default would also have been manageable.

But Taoiseach Enda Kenny responded tersely, saying: "Hindsight is a wonderful thing."

Mr Mody's comments come as eurozone finance ministers are in Dublin for an informal meeting this weekend, where it is understood longer repayment terms for our bailout loans will be discussed.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Latest News

Latest Sport

Latest Showbiz