Governor of the Central Bank, Patrick Honohan, has proposed a new risk-sharing idea to deal with Ireland's seemingly unsustainable debt repayments. To put it very simply: when Ireland's GNP increases it should pay more and when the country's growth falls it should pay less back.
Apart from being a good idea, although one that will require many conditions and qualifiers to have a chance of being even reviewed by Ireland's partners, it also highlights Ireland's need to find a way to manage its huge debts.
FT article by Honohan here.
Wall Street Journal article disccuses it here.
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