This was eventually recognised and implemented from the middle of 2011, with Ireland benefitting significantly from this and from successive extensions of the maturities involved. Examination of the market yields on Irish Government bonds shows clearly that this alleviation of the financial terms of the assistance was a turning point in achieving the restoration of market confidence.
Combined with the fact that tail-risk on banking losses did not materialise on the feared scale, and the success with the liquidation of IBRC, this meant that, provided the Government stuck to its promised fiscal adjustment path8 – which it did – what had been a high risk Programme turned out a success in the end.