On the other hand, the evidence indicates that countries derive substantial benefits from opening their equity markets to foreign investors (Henry, op cit). Our approach in regard to capital account has made a distinction between debt and equity, with greater preference for liberalisation of equity markets vis-à-vis debt markets (Mohan, 2007a). Equity markets provide risk capital and this can be beneficial for growth.
Ahead of the scheduled March 2012 payment, the Central Bank has been working vigorously with the ECB and other parties on a mechanism for ensuring such a result in a manner that is at an acceptable cost to Ireland and whose design is beyond criticism from the perspective of Articles 123 and 124 of the Treaty.