Simply wont happen. The reason they forced the IMF on us was because the wanted to stop this flow of credit, Irish banks have been enjoying, but yet protect the big German, French and UK banks that are owed billion by the Irish banks. This is why they refused to let senior bond holders take a hit over the Irish taxpayer.
This story has a bit to run yet. It crazy to think that investors are protected at the expense of taxpayers. It's also untenable, as it's not affordable. The investors know this and alot of senior bond holders have sold on this their debt already.
This whole carry on is about protecting large banks that are exposed to Irish debt and thus stopping a contagion on the debt. The EU could not care less if we starved here.
Ireland will have to default, it's that simple. the government growth forecasts over the 4 year plan are the stuff of fairytales. If the bank debt is not made separate and a deal done to reduce it, we are banjaxed completely.
The only reason the ECB have been giving so much money to Irish banks is that, like the rest of us, they have been believing their bull. They then lost patience with them.
It's a source of amazement to me that the heads of these banks, who knew these lies were been told, and especially the regulator throughout this period are not in jail.
Remember when they blanket bank guarantee was given I think the figure put out on the Anglo debt was 100Million Euro, after the guarantee turning to 4 billion (ending up at 34Bn of course). They made suckers out of the government.
Funny thing is the EU and are as inept, so this has some way to go yet.