- EU expects Ireland to use some of its cash reserves
- Facilities available to it which will enable it to go to the market
- 2011 budget will be “our own budget”
- IMF/EU have seen broad outline of 4 year plan. Are broadly satisfied
- Need to have mechanism to ensure banks not too big to fail
- Unlikely IMF/EU will request changes to the plan
- Deal on public pay may come under review if circumstances deteriorate over time
- Sees intensification of type of measures govt has already adopted for banking sector
- Could be more banking assets transferring over to NAMA
AND
- No divergence of opinion between EU and IMF on treatment of senior bondholders
- Does not see any push to have senior bondholders dishonoured
- Issue of treating subordinated bondholders has not arisen in talks with EU/IMF
- Takeovers and mergers cannot be ruled out for banking sector
- Bulk of Irish bank lending will be focused on Irish consumers and businesses
- Other bank business beyond that will have to be discarded
- Will not necessarily be out of the bond markets for 3 years
- Provision of facility may allow Ireland to return to bond markets very quickly
